Confidence across Australia has rebounded, gaining back the loss it experienced last week. According to Roy Morgan, consumer confidence levels have experienced their biggest weekly gain in the entirety of 2022.
However, these figures remain 16.9 points below the same point in 2021 (101.1) and are well below the 2022 weekly average of 91.7.
“There was a notable recovery in consumer confidence over the past week, with the loss in the week of the RBA’s August rate hike more than completely reversed,” David Plank, the ANZ Head of Australian Economics.
“Across the major states, confidence was up very strongly in Western Australia and made solid gains in New South Wales and Victoria. Confidence declined in Queensland and South Australia, however. It was notable that sentiment about ‘future financial conditions’ is now in positive territory, if only just, for the first time since late May.
“In our view, this speaks to the strength of the labour market, which we expect to be confirmed by the data due later this week. But we aren’t getting carried away. Sentiment toward ‘future financial conditions’ is still well below average and overall confidence is deeply negative,” Plank continued.
Even as rate increases continue and as inflation impacts prices across the country, it doesn’t seem to be impacting Australian purchase behaviour too much.
Purchase sentiment across Australia remains somewhat the same, with 23 percent saying that now is a good time to buy major household items. This figure remains unchanged from last week.
In contrast, nearly half (49 percent) say that now is a bad time to buy a major household item. This figure has increased by one percentage point from last week.
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