Tax Refunds Lift Oz Consumer Confidence
Australian consumer confidence lift over the weekend, coinciding with a surge in cashed up customers from tax time refunds.
The ANZ-Roy Morgan Australian Consumer Confidence index jumped 1.9% versus the previous week, with respondents’ economic perception (including outlook for the next 12 months) soaring 5.8%.
All of the sub indexes reported a lift, excluding ‘current finances’ (down 0.9%).
Consumers’ feeling about their family’s finances over the next twelve months jumped 1.2% (i.e. ‘future finances).
The ‘time to buy a major household item’ index increased 3.5%, after previously slipping 4.4%.
The news births hope for the a sluggish retail landscape, with demand for a slew of big-ticket items (e.g. 8K TVs) tipped to gain traction next year.
Outlook for the next five years remained relatively unchanged.
The weekly barometer follows around 1,000 face-to-face interviews, conducted on a Saturday and Sunday.
“Confidence gained for the second straight week, and is now well above its long run average,” claims Felicity Emmett, ANZ Senior Economist.
“The federal government’s tax refunds for low-income and middle-income earners look to be boosting sentiment, particularly in the case of the ‘time to buy a household item’ subindex”
“RBA Governor Lowe’s statement that interest rates would remain low for an extended period is also likely to have helped support confidence, pushing equities to 12-year high.”
More to come…