Australians have entered 2023 with the highest levels of consumer confidence seen since September.
The ANZ-Roy Morgan Consumer Confidence index jumped 4.9 percentage points to 87.4 last week, the first time it has risen at the start of a year since 2018.
Despite this newfound confidence, it should be noted that 87.4 is still well below the monthly average (since 1990) of 111.7.
Anything under 100 is considered to be a negative outlook, so the looming recession, increasing inflation, falling house prices, and climbing interest rates are clearly still front of mind for most.
“While homeowners paying off mortgages are still reporting lower confidence than renters and outright owners, average confidence among all three groups rose in the new year,” ANZ senior economist Adelaide Timbrell said of the results.
“Household inflation expectations eased significantly from the last print of 2022, suggesting cautious optimism about lower inflation through 2023.”
