Despite the cash rate hike, Australian levels of consumer confidence are up for the third straight week.
The ANZ-Roy Morgan Consumer Confidence levels were up 1.7 points to 84.1 this week. This follows a 2.1 per cent jump last week, despite news that headline inflation exceeded 6 per cent in the year to June.
“The sharp fall in petrol prices over the past three weeks may have been more important for sentiment,” ANZ Head of Australian Economics, David Plank said.
“The drop likely explains why household inflation expectations fell 0.5ppt to 5.5 per cent. The only confidence subindex that decreased was ‘good time to buy a major household item’ – ongoing weakness in the housing market and pressure on household budgets being likely reasons.”
While this indicates a positive trend, confidence remains a huge 17.7 points below the same week a year ago, and 8.2 points below the 2022 weekly average of 92.3.
Only 23 per cent of Aussies say their families are ‘better off’ financially than this time last year.
42 per cent, on the other hand, say their families are ‘worse off’ financially.
“Despite the gain in in the past three weeks, sentiment remains at a very low level and vulnerable to more tightening from the RBA,” Plank concludes.
