Consumer confidence up following Federal budget but still fragile
Australia’s consumer confidence is at its highest since November 2014 as revealed by the latest Morgan Poll.
It currently sits 3.6 per cent higher than last week at 114.6.
Confidence has risen a total 5.4 per cent over the last fortnight with some experts suggesting this is due to recent interest rate cuts and last week’s Federal budget.
Consumer confidence decreased to 99.3, 15 per cent less than present levels, after last years federal budget announced several widely unpopular cuts. This included measures such as plans to introduce a $7 GP co-payment fee which did not end up eventuating.
ANZ Chief Economist Warren Hogan said sentiment is now above long-term trend.
“Sentiment is now above its long-term trend and if the recent upward momentum is sustained would be consistent with stronger retail spending and economic growth over the second half of the year,” he said.
“However, the fragility of confidence over the last 18 months or so suggests that a continuing improvement cannot be taken for granted even in the presence of rising asset markets and low interest rates,” Mr Hogan said.
Unemployment remains a concern for many and will affect confidence stated Mr Hogan.
“We expect that job security will remain front and centre for Australians in their assessments of not just their own financial situation, but also the outlook for the economy.”