Australian consumer confidence rose 2 points last week to 88, according to the latest ANZ-Roy Morgan survey.
The four-week moving average slipped 0.6 points to 88.2, indicating that sentiment is still below the three-year high reached in early August.
The rebound comes as the Reserve Bank’s recent rate cuts and easing inflation have helped steady household sentiment, even as economic growth remains subdued and cost-of-living pressures persist.
There was a mixed performance across the subindices last week.
“Current financial conditions” (over the last year) lifted one point, while “future financial conditions” (next 12 months) declined 0.1 point. “Short-term economic confidence” (next 12 months) increased 2.3 points, but “medium-term economic confidence” (next five years) decreased 0.5 points.
“The ‘time to buy a major household item’ subindex recorded the largest rise at 6.9pts, a recovery from the three-month low in the week prior,” Angala said.
“Weekly inflation expectations” ticked down 0.1 points to 4.9%, while the four-week moving average eased 0.1 points to 5%.
“Weekly inflation expectations fell 0.1pt despite last week’s monthly inflation data showing that headline inflation spiked in July, albeit driven by more volatile items,” Angala said. “On a four-week moving average basis, inflation expectations have hovered around 5% over the past month and suggest consumers’ inflation expectations remain anchored.”
What it means for brokers
Stronger confidence and stable inflation could spark more buyer interest in loans and big-ticket purchases. Stay alert to changing sentiment and be ready to guide clients on the best timing, products, and strategies as households remain budget-conscious in a slow-growth economy.
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