Consumer confidence rises for 6th straight week

From ANZ Research:

Six weeks of gains in consumer confidence

  • Consumer confidence increased 1.3% last week, its sixth straight gain. With the reopening of Greater Sydney and the imminent end of Melbourne’s lockdown earlier than anticipated, confidence rose in the major cities of Sydney, Melbourne, Brisbane and Perth.
  • The subindices registered mixed results. ‘Current financial conditions’ softened 0.1%, while ‘future financial conditions’ gained 1.4%.
  • ‘Current economic conditions’ rose 4.5%, its third consecutive weekly gain. ‘Future economic conditions’ remained unchanged.
  • ‘Time to buy a major household item’ improved 0.6%. ‘Weekly inflation expectations’ was unchanged at 4.7% and its four-week moving average was steady at 4.8%.

ANZ Head of Australian Economics, David Plank, commented:

“Consumer confidence rose 1.3% nationally as greater Sydney reopened last week after more than three months in lockdown. The rise in confidence in the city over the past two weeks has been quite modest at 3.5%. This compares with the 9.2% rise over the first two weeks of reopening last year in May 2020. The difference reflects the level of confidence. Sentiment in Sydney is already above its 2021 average, while in May last year the lockdown ended with sentiment still at very depressed levels. Confidence also rose in Melbourne (5.4%) as its lockdown has been scheduled to end earlier than anticipated and is back to the level it was in mid-July”.

Full report here.

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