Consumer confidence edged up over the weekend, an ANZ survey suggests, amid signs people were feeling slightly better about the state of the economy.
The ANZ-Roy Morgan Australian Consumer Confidence index rose 0.3 per cent from the previous week, with respondents’ perception of the economy – including the outlook for the next 12 months – gaining 3.4 per cent.
Sentiment was up 1.0 per cent in response to a question about the prospects for the Australian economy over the next five years.
But the weekly measure of consumer mood, which is based on about 1,000 face-to-face interviews conducted on Saturdays and Sundays, also recorded a 4.4 per cent drop in the “time to buy a major household item” metric.
The survey index implied a 2.8 per cent rise in how people felt about their current financial condition compared to a year ago and edged up 0.3 per cent on the subject of their family’s finances over the next 12 months.
The ANZ-Roy Morgan index had dipped 1.5 per cent in prior reading and 1.1 per cent before that.
“Confidence was up marginally last week after two consecutive falls, with the detail a little more positive with all the financial and economic conditions readings rising,” ANZ economist David Plank said.
Respondents in the poll expected inflation to reach 4.2 per cent in two years – a number that has increased for the third week in a row.
The Reserve Bank of Australia has a target inflation rate of between 2.0 per cent and 3.0 per cent although the most recent calculation puts it at an annual rate of 1.3 per cent.
“This will provide comfort to the RBA that the slide in consumer inflation expectations has been arrested,” Mr Plank said referring to the latest survey results.