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Consumer Confidence Up Ahead Of Xmas

Australians are feeling confident ahead of Christmas, with consumer confidence jumping up in the past week.

This marks the first time this year that the ANZ-Roy Morgan Consumer Confidence index has risen following an interest rate hike, suggesting that consumers are feeling more at ease with the constantly rising rates.

The index advanced 0.2 percentage points to 82.9, above the four-week average of 82.6, but well below the 111.8 monthly average (since 1990).

ANZ senior economist Catherine Birch noted that “consumer confidence increased marginally last week despite the RBA raising the cash rate 25bp on Tuesday, the first time in the current tightening cycle that confidence has improved after an increase in the policy rate, perhaps a sign that households expect a pause soon.

“While confidence dropped 1.3pts for households paying off their mortgage, to be below 80 for the ninth straight week, confidence lifted for homeowners (+1.9pts) and renters (+0.2pts).

“We’ll be watching the December spending data carefully for signs of a slowdown following the 6.8pt drop in the “time to buy a major household item” index to a four-week low.”

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