Households’ views of economic conditions rose solidly at the beginning of December, bringing consumer confidence to its highest level in 10 weeks.
The ANZ-Roy Morgan consumer confidence index rose by 2.8 per cent in the week ending 3 December, with both the headline index and its details showing positive results.
The biggest improvement was in households’ views of future finances, which increased by 4.4 per cent. Households’ views of their finances compared to a year ago, also improved slightly by 0.2 per cent.
Meanwhile, households’ views of economic conditions over the next 12 months also rose strongly by 2.9 per cent, and the view of the economic outlook in the next five years increased by 2.2 per cent.
Further, after three weeks of falling, household views on whether ‘now is a good time to buy a household item’ lifted by 4.0 per cent during the week.
Commenting on the findings, ANZ head of Australian Economics Felicity Emmett said: “Australian households remain optimistic about their finances and more confident about the economy, especially in the near term.
“Importantly, households’ views of their current finances are particularly upbeat – with the index well above its long-run average. This indicator tends to correlate well with consumer spending, suggesting that the outlook for consumer spending remains positive despite the recent lull.”
Ms Emmett also highlighted that the results suggest the apparent loss in momentum in the economy, in light of Q3 GDP results, is likely to be temporary.
“[Last] week’s GDP report and RBA meeting will likely shape the news flow in the coming days and have the potential to influence consumers’ confidence over the coming week,” she concluded.
[Related: Consumer confidence ticks up]