After a sharp drop in the previous week, consumers’ view on the economic outlook in the next five years edged higher in the week ending 28 November.
The ANZ-Roy Morgan Australian Consumer Confidence report found that households’ views on economic conditions over the next 12 months edged 0.7 per cent higher this week.
In particular, the report noted that households’ view on the economic outlook for the next five years gained a “solid” 3.1 per cent.
The four-week moving average of inflation expectations also increased slightly to 4.0 per cent from 3.9 per cent last week.
Meanwhile, households’ view of their finances compared to a year ago fell 1.5 per cent during the same period, and their view of their future finances dropped 0.9 per cent.
ANZ head of Australian Economics Felicity Emmett commented: “Australian household confidence has come off the highs seen in August. This likely reflects consumers’ concerns over the recent loss of momentum in labour markets, with the pace of employment growth slowing, and persistently low wage growth.”
Ms Emmett added: “That said, confidence remains well above its long-run average. In the lead-up to the Christmas season, we will be watching consumer confidence as a key gauge for the outlook on spending.”
“After an earlier soft patch, momentum in retail sales has picked up over the past two months, and with confidence still elevated we expect this week’s retail data to show another solid rise.”