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It’s good news for small businesses, as Consumer Confidence reaches it highest rating in recent months.
According to findings released in the ANZ-Roy Morgan Australian Consumer Confidence Index, Consumer Confidence is up by 2.3 per cent. Analysts are suggesting the increase has been driven by consumers’ improved outlook on the current economic conditions.
Households’ views on the current financial conditions rose by 1.8 percent with consumers’ views on the current economic conditions up by 7.9 percent, taking the index to its highest point in 20 weeks.
Interestingly the sub-indices revealed more householders are considering making a major purchase, with the ‘time to buy’ index rising by 1.8 per cent.
ANZ’S Head of Australian Economics, David Plank, suggested the increased confidence could be contributed to improved labour conditions and the Reserve Bank’s recent positive assessment of the Australian market:
“The solid increase in confidence last week is very encouraging and likely reflects another good jobs report along with the RBA’s broadly positive assessment of domestic conditions in the minutes of the July board meeting,” Plank said.
“Consumers appear to have taken heart from the ongoing improvement in labour market conditions, in particular, the large increases in full-time employment and hours worked. As the RBA has pointed out, a reduction in spare capacity has implications for wage growth and consequently for household spending.”