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A recent report has revealed that consumer confidence has made a solid recovery in the second week of August.
According to the weekly ANZ-Roy Morgan Australian Consumer Confidence report, consumer confidence has bounced 2.5 per cent in the week ending 14 August 2016, offsetting the decline of the previous week.
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According to the report, sentiment is now 4.3 per cent above its long-run average.
The report found that confidence was driven upwards by a recovery in consumers’ view of the economic outlook.
Households’ view of the 12-month economic outlook rose by 9.6 per cent, while their view of the five-year economic outlook also improved notably, up 4.6 per cent.
Consumers’ optimism about their finances also increased — views of future finances rose by 1.7 per cent.
Meanwhile, consumers’ views regarding whether ‘now is a good time to buy a major household item’ fell by 1.1 per cent.
“While consumer confidence has been volatile recently, it remains well above its long-run average,” ANZ head of Australian economics Felicity Emmett commented.
“Australians’ perceptions of the economic outlook have likely been supported by a combination of factors: the strength in the housing market, relatively resilient business sentiment, low interest rates and ongoing strong performance in equity markets,” she said.
Ms Emmett added that the labour market’s strength also remains a key driver of consumer confidence.
“On this front, the week’s employment data will be important for the near-term direction of consumer confidence,” she said.
[Related: Confidence improves among consumers]
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