(Australian Associated Press)
Consumers a more optimistic about their finances and short-term outlook for the economy despite uncertainty about global politics.
The ANZ-Roy Morgan Australian Consumer Confidence Survey shows that sentiment rose 0.9 per cent to 118.1 in the week ending January 22, well above the 100-point level delineating confidence and pessimism.
ANZ senior economist Jo Masters said the resilience of confidence amid global political uncertainty was encouraging.
“In particular, sentiment around current financial and economic conditions has improved significantly since the sharp drop in the wake of the weak third quarter (Australian) GDP (gross domestic product) report,” she said in a statement on Tuesday.
ANZ said consumers’ views about their current finances compared to one year ago rose a solid 3.4 per cent in the week, while their views of their future finances were broadly flat after edging up just 0.2 per cent.
Respondents’ views about economic conditions over the next 12 months rebounded strongly, jumping 5.4 per cent and reversing a two per cent fall the previous week.
However, there were some blemishes on the index, with households’ views about economic conditions over the next five years falling three per cent.
Respondents were also 0.4 per cent less likely to buy a household item, with that subindex continuing to unwind its post-Christmas bounce.
Inflation expectations also dropped, by 4.5 per cent, following the weaker-than-expected fourth quarter inflation report.
Ms Masters said she expects the recent rise of the inflation expectations subindex to be further unwound in coming weeks.