Consumer confidence rises for 3rd consecutive week

The potential of more rate rises is not dampening consumer confidence with the index rising for a third consecutive week.

by | 29 Nov, 2022

Consumer confidence hits 30-year low

The index rose 1.8 per cent nationally but among the states declined in NSW and South Australia.

‘Weekly inflation expectations’ dropped 0.1 percentage points to 6.2 per cent, while its four-week moving average also fell 0.1ppt to 6.5 per cent.

The subindex results were mixed with ‘current financial conditions’ jumping 9 per cent, partially making up for the 12.3 per cent net drop over the previous eight weeks. ‘Future financial conditions’ were up 2.8 per cent.

‘Current economic conditions’ dropped by 0.3 per cent while ‘Future economic conditions’ gained 0.3 per cent, its third consecutive gain. ‘Time to buy a major household item’ fell 2 per cent after a 9.2 per cent jump the week before.

ANZ head of Australian economics, David Plank, said confidence is at its highest since early October but is still at exceptionally weak levels.

“The increase was mainly driven by the ‘financial situation compared to a year ago’ and ‘financial situation next year’ rising 9 per cent and 2.8 per cent respectively,” he said.

Household inflation expectations dropped 0.1 percentage points to 6.2 per cent, its seventh straight week above 6 per cent. The drop in October retail sales suggests weak confidence may finally be impacting household spending. But changing seasonal patterns may explain some of the softness.

ANZ-observed spending data from last week will provide an insight into whether consumers held back in October to spend big on Black Friday sales.”

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