Shopper confidence hits two-month excessive

This week, the ANZ-Roy Morgan Shopper Confidence Index rose by 1.6 factors, reaching 83.5 – the best stage noticed in over two months since early February.

Regardless of the rise, the index has remained beneath the 85-point mark for a document 63 consecutive weeks.

Shopper confidence noticed a rise in New South Wales, Victoria, and Queensland, whereas it declined in Western Australia and South Australia, reflecting combined financial sentiments throughout the states.

Key drivers of shopper confidence

The rise in shopper confidence this week was fueled by improved perceptions of non-public monetary conditions and extra beneficial views on the timing to buy main home goods.

Present monetary circumstances and outlook

At the moment, 22% of Australians really feel they’re financially higher off than final yr, a rise of three proportion factors. Nonetheless, half of the inhabitants nonetheless feels worse off.

Expectations for private monetary circumstances over the subsequent yr present that 33% of Australians imagine they are going to be higher off, which is a slight enchancment from earlier measurements.

Financial confidence within the quick and medium time period

Quick-term financial optimism barely elevated, with 11% of Australians anticipating good financial instances within the subsequent twelve months. Trying additional forward, 14% count on constructive financial circumstances over the subsequent 5 years, indicating a cautious however enhancing financial outlook.

Buying sentiment

Sentiment about buying main home goods remained largely steady, with 23% contemplating it time to purchase, regardless of 47% viewing it as a nasty time.

“Regardless of a small elevate in ANZ-Roy Morgan Shopper Confidence, the sequence stays stubbornly weak, averaging simply 83 factors in 2024,” Dunk stated in a media launch. “Whereas that is increased than 2023’s 78-point common, it’s nonetheless 30 factors off the sequence’ pre-COVID (1990- 2019) common of 113 factors.”

She stated that final week’s enhance was pushed by an increase within the monetary circumstances subindices, with a five-point enhance in present monetary circumstances.

Inflation and financial outlook

Weekly inflation expectations edged down to five.2%, though the four-week transferring common climbed to a three-month excessive, suggesting ongoing considerations about inflation amongst Australian customers.

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