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The ANZ-Roy Morgan Research (RMR) consumer confidence index rose in the week ended 28 September, up 0.8 points (0.7%) to 113.7, taking it just above its long-run average reading of 113.2 (see next chart).
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As usual, ANZ chief economist, Warren Hogan, talked-up the result, saying that the ANZ still believed “household spending will grow moderately this year”, seemingly summoning the confidence fairy and wealth effect from rising housing prices, even though wages are falling in real (inflation-adjusted) terms.
The below chart plots the most recent Westpac-Melbourne Institute Consumer Sentiment index against the ANZ-RM Consumer Confidence index, which shows some divergence recently:
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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