A new report has revealed that consumer confidence made a solid recovery in the second week of August.
Consumer confidence bounced 2.5 per cent in the week ending 14 August, offsetting the decline of the previous week, according to the ANZ-Roy Morgan Australian Consumer Confidence report.
Sentiment is now 4.3 per cent above its long-run average, driven up by a recovery in consumers’ view of the economic outlook.
Households’ view of the 12-month economic outlook rose 9.6 per cent, while their view of the five-year economic outlook also improved, up 4.6 per cent.
Consumers’ optimism about their finances also increased, rising by 1.7 per cent.
Meanwhile, consumers’ views on whether ‘now is a good time to buy a major household item’ fell by 1.1 per cent.
“While consumer confidence has been volatile recently, it remains well above its long-run average,” ANZ head of Australian economics Felicity Emmett said.
“Australians’ perceptions of the economic outlook have likely been supported by a combination of factors: the strength in the housing market, relatively resilient business sentiment, low interest rates and ongoing strong performance in equity markets.”
Ms Emmett added that the labour market’s strength also remains a key driver of consumer confidence.
“On this front, the week’s employment data will be important for the near-term direction of consumer confidence.”