Consumer confidence has hit its highest level in four months, with sentiment regarding Australia’s economy turning positive.
According to ANZ and Roy Morgan weekly index, ‘inflation expectations’ fell by 0.6 points to 5 per cent, the lowest since mid-February.
Confidence in ‘current economic conditions’ also rose 4.8 per cent, following a 5.2 per cent fall over the past two weeks. ‘Future economic conditions’ leaped 6 per cent, passing 100 (considered the ‘neutral level’) for the first time since late February.
This all drove an increase of 2.1 per cent overall, to 87.8 the highest level since late May.
“While confidence was still well below the neutral level of 100, at least two of the five confidence subindices exceeded 100 for the first time since early March,” ANZ senior economist Catherine Birch said.
“Continued strength, despite 225 basis points of rate hikes over the past five months may be quelling fears of a sharp downturn,” Birch said.
