Aussie confidence on the rise
Australian consumer confidence levels are now back to the highs seen in December 2015 with the negative impact from financial market volatility in January reversed, according to ANZ-Roy Morgan research.
The ANZ-Roy Morgan report found consumer confidence rose 1.4 per cent to 116.4 this week, adding on to last week's 3.1 per cent rise.
The report said this was thanks to a strong Australian dollar, gains in equity markets, and falling petrol prices.
"The increase in confidence this week was driven by households' views of their own finances. Consumers' views towards their personal financial situation in the next 12 months rose by a sharp 5.4 per cent to the highest level seen since October 2009," the report said.
"By contrast, consumers' views towards the economic outlook fell this week, partially retracing the large increases in the previous week. The subindex on ‘economic conditions in the next 12 months' declined 0.4 per cent and ‘economic conditions in the next five years' fell 3.1 per cent."
ANZ head of Australian economics, Felicity Emmett, said this week's reading was the second highest seen since January 2014.
"Solid labour market conditions are also likely to have played a key role in lifting confidence. This week's labour market report will be important in assessing whether the recent strength has persisted".
"Further inroads into the unemployment rate will be crucial for confidence and spending."
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