Does the canny Aussie consumer sense an RBA pivot?

Two charts to consider. First, consumer confidence is off the lows:

ANZ-Roy Morgan Australian Consumer Confidence rose 2.1% last week, hitting a four-month high. Continued economic strength despite 225bp of rate hikes over the past 5 months may be quelling fears of a sharp downturn. #ausecon @cfbirch @arindam_chky @RoyMorganAus pic.twitter.com/ZHw9pwL7OO

— ANZ_Research (@ANZ_Research) September 26, 2022

The second chart is auction clearances which usually tracks CC:

If so, then the RBA will not be pleased and consumers will be doing themselves in as it tightens more.

Then again, there is nothing the Aussie consumer enjoys more than a ripping recession as his mortgage pain eases.

Share

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.