More confidence as restrictions ease
Consumer confidence has had a small increase in the past week as restrictions in most states begin to ease, according to the latest ANZ-Roy Morgan Consumer Confidence report.
In the past week consumer confidence has lifted 1.4pts to 107.4 and although it is still below the 2021 weekly average of 108.2, it is now 2.9 points higher than the same week a year ago, November 21/22, 2020 (104.5).
NSW and South Australia had a slight drop-off while Victoria, Queensland and Western Australia all increased driven by Australians becoming more confident about the prospects for the economy over the next five years.
The latest report showed 29 per cent of Australians said their families are “better off” financially than this time last year compared to 26 per cent (down 2ppts), who said their families are “worse off” financially.
However, a decreasing plurality of 37 per cent (down 1ppt) of Australians expect their family to be “better off’ financially this time next year, compared to 17 per cent (unchanged) that expect to be “worse off” financially.
Despite the confidence increase, fewer Australians 18 per cent (down 2ppts), expect “good times” for the Australian economy over the next 12 months compared to 20 per cent (unchanged), who expect “bad times”.
In the longer-term, a fifth of Australians, 20 per cent (up 2ppts), are expecting “good times” for the economy over the next five years compared to 15 per cent (down 4ppts) expecting ‘bad times”.
Buying intentions remain stable this week with 39 per cent (unchanged) of Australians, saying now is a “good time to buy” major household items while 28 per cent (down 2ppts) said now is a “bad time to buy”.
“Inflation expectations decreased 0.4ppt to 4.6 per cent last week despite petrol prices hovering around record highs,” ANZ head of Australian economics, David Plank, said.
“This indicator can be volatile from week-to-week, so we are cautious about overreacting to one survey reading. If the fall in inflation expectations is sustained, however, it may be an important signal for wages growth.”