By Australian consumer confidence showed a significant improvement last week, reflecting growing optimism that official interest rates are nearing their peak. According to a survey conducted by ANZ Bank and Roy Morgan, consumer confidence increased by 3.2 points compared to the previous week.
This positive trend is consistent with the resilience of the job market and recent data indicating a cooling of price pressures across the economy. Weekly inflation expectations have dropped by 0.2 percentage points to 5.2%, the lowest level since May.
The survey also highlighted the following changes in sentiment:
Financial Conditions
Sentiment regarding current financial conditions saw a substantial increase of 7 points, offsetting a 6.9 point decline in the previous week. Future financial conditions also improved, rising by 7.6 points after a 9.6 point fall.
Economic Conditions
Current economic conditions experienced a boost of 3.4 points, surpassing 70 for the first time in 14 weeks. Future economic conditions rose by 0.4 points.
While overall confidence rose, consumers were less optimistic about purchasing major household items, with a decline of 2.5 points for the second consecutive week.
Adelaide Timbrell, Senior Economist at ANZ, noted that the four-week average of consumer confidence is increasing across all housing cohorts, indicating some positive signs as interest rates stabilize.
Over the past two months, the Reserve Bank of Australia (RBA) has maintained its official cash rate at 4.1%. RBA Governor Philip Lowe recently stated that the worst is over for those burdened by high mortgage repayments.
The ANZ-Roy Morgan Australian consumer confidence rating is based on 1,513 interviews conducted online and over the telephone during the week leading up to Sunday.
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