Lead-Up to Federal Election Drives Consumer Confidence Increase

In a new report from Roy Morgan, consumer confidence with Aussie shoppers increased 1.5 points, now sitting at 90.8. This comes after a four-week straight decline, and is the first increase recorded in over a month (since mid-April).

The 1.5 point increase partially offset the 7.7 percent decline that was recorded over the last month. According to David Plank, the ANZ Head of Australian Economics, this was primarily driven by an increased sentiment towards financial conditions in the lead up to the federal election.

Purchase sentiment has also increased, the report found. Now over one quarter (28 percent) of Australian residents said that now is a good time to buy a major household item – this is an increase of two percentage points.

There has been a decrease in negative consumer sentiment, with 42 per cent saying that now is a bad time to buy a major household item – a decrease of two percentage points.

“The rise in the index was mainly driven by more people becoming confident about their ‘financial conditions over the next year’ along with more respondents saying it is a ‘good time to buy a major household item’,” Plank explained.

The news of unemployment dropping below four percent may have also driven this increase in confidence, despite inflation increasing by 5.3 percent.

Next week, Roy Morgan will present the results of consumer confidence following the federal election.

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