- Consumer confidence jumped 3.1% last week, as the NSW government released its much anticipated “roadmap to freedom”, which sets out the plan for easing of restrictions once 70% of adults in the state have been fully vaccinated.
- Four out of the five subindices made significant gains. ‘Current financial conditions’ rose 2.0%, while ‘Future financial conditions’ were up 3.7%.
- ‘Current economic conditions’ improved 6.8%, while ‘Future economic conditions’ softened 0.6%.
- ‘Time to buy a major household item’ gained 4.2%. ‘Weekly inflation expectations’ dropped 0.2ppt but remained quite elevated at 4.5%. Its four-week moving also remained at 4.5%.
ANZ Head of Australian Economics, David Plank, commented:
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Consumer confidence gained 3.1% last week, driven by a huge jump of 10.6% in Sydney as the NSW government released its roadmap out of lockdown. With close to 47% of NSW’s adult population already fully vaccinated, this roadmap is expected to take effect by mid-October. That is, once the number reaches
70%. Confidence increased by 6.2% in Victoria, while it fell 3.2% in Queensland as new cases emerged in the state last week.
Household inflation expectations have been quite volatile in the past few weeks, rising sharply then dropping back. Our research indicates that expectations tend to follow developments in petrol prices and the headline CPI. With these appearing to have peaked, we may be at a level where expectations stabilise.