Despite this rise, the index remains below the 85-point mark for a record 80 straight weeks.
“The rise may be linked to the RBA’s decision to keep rates on hold last week,” ANZ economist Madeline Dunk (pictured above) said.
A key driver of the boost in confidence was a significant improvement in personal financial sentiment. Nearly a quarter of Australians (24%) now say they are “better off” financially than this time last year, the highest figure since November 2022.
“Household confidence in their current financial conditions saw the largest weekly rise since late last year,” Dunk said.
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Short-term economic confidence saw a slight rise, with 9% of Australians expecting “good times” over the next 12 months. However, 34% continue to expect “bad times.”
Medium-term economic outlook remained stable, with 10% predicting good times over the next five years, while 19% expected bad times.
Despite the uptick in confidence, Australians remain cautious about major purchases, with 24% saying it’s a “good time to buy” major household items, up just 2 points. However, nearly half (47%) still believe it’s a “bad time to buy.”
“The four-week moving average for the ‘time to buy’ sub-index is at its second highest since February 2023,” Dunk said.
Confidence rose in most states, including Victoria, Queensland, Western Australia, and South Australia, while New South Wales saw a slight decline.
“The four-week moving average is now at a six-month high of 83.2 points, reflecting broad improvement across multiple subindices,” Dunk said.
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