Despite the rise, the index is still 15.9pts below the level it was the same week a year ago.
The survey found the “Weekly inflation expectations” fell to its lowest since February, and now sits at 5 per cent.
The increase in consumer confidence has mainly been driven by improving sentiment in regard to the performance of the Australian economy over the next year and five years. There was no clear trend on a state-by-state basis with NSW, Queensland and Western Australia up for a second straight week but Victoria down for a second straight week.
This week, four of the five confidence subindices registered gains — “Current economic conditions” was up 4.8 per cent after a 5.2 per cent fall over the previous two weeks, “Future economic conditions” jumped 6.0 per cent, exceeding the neutral level of 100 for the first time since late February.
The subindices “Current financial conditions” rose 2.4 per cent after a 4.8 per cent decline the week before. “Future financial conditions” bucked the trend with a 3.2 per cent decrease but remains above the neutral level of 100.
“Consumer confidence rose 2.1 per cent last week, hitting a four-month high of 87.8. While confidence was still well below the neutral level of 100, at least two of the five confidence subindices exceeded 100 for the first time since early March,” ANZ senior economist Catherine Birch said.
“The increase in headline confidence was mainly driven by improved sentiment around Australia’s economic conditions. Continued strength despite 225bp of rate hikes over the past five months may be quelling fears of a sharp downturn.
“ANZ-observed spending data show household spending was solid in the first half of September, including on discretionary goods and services. The sharp drop in inflation expectations to a seven-month low of 5.0 per cent, despite higher petrol prices, also likely supported confidence.”
