The ANZ-Roy Morgan Consumer Confidence Rating rebounded 4.5 per cent to 111.8 this week, partially reversing an eight per cent fall over the previous two weeks.
According to the report based on the weekly survey, the bounce was likely driven by easing concerns around international events, as the Chinese stock market rebounded and Greece reached an agreement with its creditors.
The report found that the rise in confidence was broad-based. The sub indices ‘economic conditions in the next year’ (up 10.8 per cent) and ‘economic conditions in next five years’ (up 7.1 per cent) reported the largest increases. Of note, confidence in the medium-term economic outlook bounced off the lowest level since the survey began in 2008.
ANZ Research Co-Head of Australian Economics Felicity Emmett says the uplift in the ANZ-Roy Morgan Consumer Confidence Rating is a positive sign that recent concerns around Greece and China have not had a lasting impact on sentiment.
“Despite the lift, levels remain subdued and confidence is a vital ingredient missing in the economy,” she said. “Non-mining businesses remain reluctant to lift investment, given uncertainty about the demand outlook. As such, a sustained lift in consumer confidence is key to returning the economy to trend growth.”