Consumer confidence rises for third week

Petrina Berry
(Australian Associated Press)

Consumer confidence has risen for the third straight week, marking the longest sustained rise in confidence this year.

The ANZ-Roy Morgan Consumer Confidence Index lifted 0.6 per cent to 112.9 for the week to June 4, bringing the weekly index back to its long-term average.

Households’ expectations of current economic conditions improved 1.4 per cent last week on the back of a 3.5 per cent rise the week before.

ANZ’s head of Australian economics David Plank said the sustained rise in confidence reflects the improvement in the jobs market in recent months.

However, he said households’ views about financial conditions have been falling since late January, barring the bounce in April, and are at their lowest since August 2014.

“In our view, sentiment has fallen prey to a series of weak wage growth numbers amidst an environment of rising household debt,” he said.

“We expect confidence will improve further over the medium term if the labour market follows the encouraging signal from strong business conditions and ANZ Job Ads.”

The bank’s latest job ads survey released on Monday showed that advertisements edged 0.4 per cent higher in May, following a solid 1.5 per cent rise in the previous month.

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