Australian Consumer Confidence Up as Renters Become Upbeat

By James Glynn

SYDNEY–Australian consumer confidence climbed last week amid increasing speculation that the Reserve Bank of Australia’s record-breaking increase in the official cash rate over the last year is close to ending.
Consumer confidence rose by 2.6% over the week, with renters leading the recovery in sentiment, the survey showed.

ANZ senior economist Adelaide Timbrell said confidence for those renting their property rose 7.9 points, while it rose only slightly by 0.9 points for those paying off their homes.
The next policy meeting of the RBA is scheduled for next week, with second-quarter inflation data due Wednesday set to determine if the central bank adds to the already crushing weight of soaring mortgage interest-rate increases.
Recent debate in Canberra has focused heavily on the issue of rising rents, especially its contribution to inflation, with some lawmakers suggesting that the rents should be frozen for a time.
Many contend that rising interest rates have sparked the jump in rents over the last year.
The average confidence level was at its highest since the first week of June but has now stayed below the 80 mark for 21 weeks, one week shy of the record set during the 1990-91 recession.
Weekly inflation expectations fell 0.2 percentage points to 5.4%. Its four-week moving average fell from 5.7% to 5.6%, the survey showed.
Sentiment around current financial conditions jumped 6.7 points, which more than offset a 5.7 points fall the week before. Future financial conditions bounced back above 90 with a 4.9-point increase, while current economic conditions increased 2.9 points.
Consumers were more upbeat about buying a major household item, which gained 0.7 points over the week.
The weekly ANZ-Roy Morgan Australian Consumer Confidence Rating is based on 1,472 interviews conducted online and over the telephone during the week to Sunday.
Write to James Glynn at [email protected]