Australian Consumer Confidence Rises Despite Threat of More Rate Hikes
September 05 2022 - 8:04PM
Dow Jones News
By James Glynn
SYDNEY--Australian consumer confidence rose last week despite
widespread expectations that the Reserve Bank of Australia will
deliver a further 50-basis-point rate hike today.
Consumer confidence increased 1.3% the previous week, reaching
its highest level since early June, according to a weekly survey by
the ANZ Bank and pollster Roy Morgan.
The RBA has been raising interest rates at the fastest pace
since 1994 since May. House prices have started to fall as a
result, but consumer spending remains robust for now.
The survey data by housing status shows that for people renting
a home, confidence jumped last week and is now at a higher level
than it was before the RBA started raising interest rates, said
David Plank, ANZ's head of Australian economics.
However, for people paying off a mortgage and for those who own
their home, confidence is sharply lower, down by 19% and 13%
respectively since the RBA's first rate hike in May, he added.
"The recovery in consumer confidence is encouraging, but it
remains in very negative territory despite the lowest unemployment
rate in decades," Mr. Plank said.
The four-week average for inflation expectations nudged 0.1
percentage points lower to 5.5%, according to the survey.
Confidence around both current and future economic conditions
increased for a fourth straight week, by 1.1% and 2.6%
respectively. Both readings are at their highest level since late
May, the survey showed.
Consumers were also more upbeat about buying a major household
item. The measure rose 2.4% last week after a 5.5% drop the week
before.
The weekly confidence rating is based on 1,497 interviews
conducted online and over the telephone during the week to
Sunday.
Write to James Glynn at james.glynn@wsj.com; @JamesGlynnWSJ
(END) Dow Jones Newswires
September 05, 2022 19:49 ET (23:49 GMT)
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