Consumer confidence increased by 1.6 per cent in the week ending November 1, according to the latest ANZ-Roy Morgan Australia Consumer Confidence report.
The four-week moving average is now at its highest level since February 2014.
Confidence about the economic outlook has surged since Malcolm Turnbull’s election as Prime Minister. The subindex ‘economic conditions in the next 12 months’ rose 5.1 per cent the previous week, and is now 25 per cent higher than prior to the change in prime ministership. Consumers’ views towards ‘economic conditions in the next five years’ fell 3.3 per cent the previous week, but is 9.5 per cent above levels seen prior to Mr Turnbull’s appointment.
Consumers’ views towards their ‘finances compared to a year ago’ bounced 6.7 per cent, reversing the falls seen in the previous two weeks, which were driven by the banks’ lending decisions. Confidence on ‘finances in the next year’ also rose, 1.5 per cent, lifting overall confidence.
ANZ Chief Economist Warren Hogan said: “It is encouraging to see that consumer confidence has remained elevated above its long run average in the past few weeks. The significant improvement in consumers’ view towards the economic outlook has been important in this trend, with confidence in the new government appearing to offset the recent increases in variable mortgage rates and signs of slowdown in house price growth.
“Households will be looking for the Turnbull Government to deliver a clear and credible economic platform to return the economy to trend growth. This will be critical in the face of a slowing housing market.”