Consumer confidence in Australia improved last week for the third straight week as petrol prices eased, taking pressure off strained household budgets.
Consumer confidence rose 2.1% during the week, according to a survey by ANZ Bank and Roy Morgan.
In line with the drop in fuel prices, weekly inflation expectations fell by 0.5 percentage points to 5.5%, the lowest level since late May.
The five-week moving average fell 0.1% to 5.8%.
Sentiment around current financial conditions rose 0.5 percent, while future financial conditions rose 5.3 percent, the survey found.
Current economic conditions rose 1%, while future economic conditions rebounded 3.6%, nearly reversing a 3.9% decline the previous week.
The rise in confidence came despite news that inflation topped 6% year-on-year in June.
The only confidence indicator to fall was for responses to the question whether it’s a good time to buy a major home appliance, which fell 1.5%.
Possible reasons are the continued weakness in the housing market and the pressure on household budgets.
Also, despite the rise over the past three weeks, sentiment remains very low and is vulnerable to further policy tightening by the Australian central bank.
Source: Capital
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