Consumer Confidence Rebounds After 3-Week Fall
Consumer confidence in Australia has rebounded 2.5 per cent, after falling 12.5 per cent over the past three weeks.
This is according to the ANZ-Roy Morgan Australian Consumer Confidence survey, which credits falling inflation expectations for boosting sentiment.
Confidence increased in Victoria, Queensland and South Australia, while it dropped in New South Wales and Western Australia.
“Inflation expectations dropped 0.6 percentage points last week to 5.8 per cent as petrol prices dropped sharply,” ANZ Head of Australian Economics, David Plank, said.
“We think this explains much of the lift in sentiment, though the focus on relieving cost of living pressures in the Australian Federal Budget may also have played a part.
“The fall in petrol prices is likely due to lagged effects of the drop in crude prices since March 8 which have declined by nearly 20 per cent since then.
“The cut to petrol excise announced in the budget may, depending on volatile oil prices, see petrol prices drop further in the coming weeks. This could potentially lower inflation expectations and lift consumer sentiment further.”