Consumer confidence jumps post rate cut

Consumer confidence rose 4.7 points last week to 89.8 points. The four-week moving average lifted 1.0 points to 87.5 points.

‘Weekly inflation expectations’ dropped 0.7 percentage point to 4.2 per cent, while the four-week moving average fell 0.2 points to 4.6 per cent.

‘Current financial conditions’ (over the last year) increased 7.5 points, while ‘future financial conditions’ (next 12 months) jumped 10.0 points.

‘Short-term economic confidence’ (next 12 months) rose 4.6 points and ‘medium-term economic confidence’ (next five years) grew 1.6 points.

The ‘time to buy a major household item’ subindex ticked up 0.1 points

"ANZ-Roy Morgan Australian Consumer Confidence rose 4.7 points last week to 89.8 points, its highest level since May 2022," ANZ Economist, Sophia Angala said.

"The lift across all subindices follows the Reserve Bank of Australia (RBA)’s 25 basis point rate cut and robust employment data last week.

"Across the housing cohorts, confidence amongst mortgage holders jumped 10.7 points to its highest level since early May 2022 (before the beginning of the RBA’s hiking cycle) and is now sitting above the confidence of outright homeowners, which remained largely steady last week.

"Meanwhile, the confidence of renters also rose 4.0 points, but remains the lowest of the three housing cohorts. We expect a gradual uptrend in ANZ-Roy Morgan Australian Consumer Confidence this year, as tax cuts, easing inflation and the RBA’s easing cycle support household disposable incomes."

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