Australia: Consumers are feeling positive - ANZ

Australian consumers are feeling positive as the ANZ-Roy Morgan Consumer Confidence Index lifted from 126.9 to 127.7 in February, notes Sharon Zollner Chief Economist at ANZ.

Key Quotes

“This is still 2 points off the September high, but it is a solid level. On a seasonally adjusted basis the index remains 8 points off its September high at 124.7.”

“After surging 8 points last month the Current Conditions Index fell 4 points in February to 127.3. The Future Conditions Index lifted another 4 points to 128.0 and has largely unwound its post-election dip.

• Consumers continue to feel content about their current financial situation. A net 15% feel financially better off than a year ago. The proportion of those who reported being worse off was the lowest in the history of the survey.
• A net 34% of consumers expect to be better off financially this time next year (up 5 points).
• A net 40% say it’s a good time to buy a major household item, down 7 points. This is still a strong level and should support durables spending.
• Perceptions regarding the economic outlook were steady at +21%. The five-year outlook lifted from a net +22% to +29%.
• Confidence lifted 6 points in Wellington and 3 points in regional North Island, but fell in the South Island. Auckland confidence was little changed. Wellington and the South Island ex-Canterbury are vying for top spot.
• National house price expectations lifted from 2.9% to 3.1% and are strongest in the regional North Island (3.8%). Inflation expectations continue to meander in a 3-4% range.”