Australia Weekly Consumer Confidence Ticks Up, Sharp Views on Economic Outlook Supports
Australia weekly consumer confidence for the week ending May 15 ticked higher for the third straight week, remaining well above its long run average, highly driven by sharp consumer views on the outlook of the economy.
"We expect that the RBA’s cut to the official cash rate two weeks ago likely had a (delayed) positive impact on consumer confidence," ANZ said in a research note.
The ANZ-Roy Morgan Australian consumer confidence rose 1.1 pct as views towards the ‘economic conditions in the next one year' bounced a sharp 6.1 pct and views towards 'the economy in the next five years' also jumped 3.3 pct.
However, consumers’ views towards their own current finances fell 1.8 pct last week, and views towards future personal finances were down 0.6 pct. While these series have been weaker recently, they remain well above their long run averages, ANZ reported. Meanwhile, consumers’ views towards buying a household item declined 0.7 pct, partially reversing the bounce in the previous week.
"With the economic outlook still quite uncertain, we expect that confidence will remain sensitive to developments in the domestic economic data, as well as the evolution of the political debate in the lead-up to the July election," said Felicity Emmett, Head of Australian Economics, ANZ Research.