This weekly ANZ-Roy Morgan Consumer Confidence Rating is based on 961 face-to-face interviews conducted Australia-wide with men and women aged 14 and over last weekend July 30/31, 2016.
ANZ-Roy Morgan Consumer Confidence rose a solid 2.2% to 118.0 this week, with the improvement in confidence being broadly based. Increasing speculation of a rate cut at this week’s RBA meeting was likely a key driver of confidence. In addition, the buoyancy of the equity market – with the Australian share market recording its best July in six years – was also key in supporting household sentiment.
ANZ Senior Economist Jo Masters commented:
- Consumers’ views of their current finances jumped a solid 6.8% as Australian homeowners likely look forward to a new record low in the cash rate. Household views on future finances were up 1.3%.
- Consumers seem to be more upbeat on the near-term economic outlook. Households’ views of the 12 month economic outlook rose for the fourth consecutive week, up a strong 3.7%. Views towards the economic outlook in the next 5 years edged marginally lower, down 0.6% last week.
- Consumers’ views towards whether ‘now is a good time to buy a major household item’ rose 0.6%.
“ANZ-Roy Morgan Consumer Confidence bounced sharply this week, with a number of positive factors coming into play. The pickup in confidence was underpinned by stronger optimism around household finances. This likely reflects rising speculation of a rate cut at the RBA’s meeting this week after a weak Q2 CPI report which saw inflation hitting its lowest levels in 17 years. In addition, stronger equity markets were also likely helpful in lifting confidence.
"The strength in household’s views toward their finances is particularly important as this index is a good gauge of consumer spending. Despite the heightened uncertainty, households’ sentiments toward their finances has held up well and continues to remain well above its long-run average.”
Gary Morgan, Executive Chairman, Roy Morgan Research, commented:
“The August interest rate cut by the RBA shows that finally the RBA has acknowledged Australia's massive under-employment problem that has been persistently ignored (8.3% – 1.079 million, in June, according to the latest Roy Morgan employment estimates). In addition, it's time policymakers recognised the true extent of unemployment in Australia (9.6% in June (1.247 million) according to the latest Roy Morgan real unemployment estimate). To provide an effective stimulus to the economy the RBA should immediately cut Australian interest rates to 0.5% – the same as in the comparable economies of the US & UK and as we have been calling for the RBA to do for more than two years.
"Reducing interest rates will have the most positive impact on the Australian economy when the banks start lending to more businesses rather than just households – particularly as this week’s ANZ-Roy Morgan Consumer Confidence shows Australians are growing increasingly confident – now at 118.0 (up 2.5pts this week). By providing increased finance and credit to businesses the Australian economy will grow strongly and more jobs will be created for the over 2 million Australians either unemployed or under-employed.”
Click here to view the PDF of the latest ANZ-Roy Morgan Weekly Consumer Confidence Release.
Latest ANZ-Roy Morgan Consumer Confidence Releases
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Related Research Reports
The latest Roy Morgan Consumer Confidence Monthly Report is available on the Roy Morgan Online Store. It provides demographic breakdowns for Age, Sex, State, Region (Capital Cities/ Country), Generations, Lifecycle, Socio-Economic Scale, Work Status, Occupation, Home Ownership, Voting Intention, Roy Morgan Value Segments and more.
You can also view our monitor of Monthly Australian Unemployment & Under-employment Estimates.
The week that was July 25-31, 2016
Woolworths to cut 500 jobs in billion-dollar corporate restructure
Joyce denies Turnbull was playing politics in blocking Rudd's tilt at UN top job
'Not suitable': Turnbull dashes Rudd's hopes of UN's top job
George Pell investigated over allegations of sexual abuse
One Nation, Team Xenophon scoop up more than $1m in election funding
High Court dismisses class action over ANZ credit card fees
'Appalled' PM announces royal commission into juvenile detention
Andrews urges PM to stop 'harmful' same-sex marriage plebiscite