Consumer confidence rises as unemployment falls.

 

Australian consumer confidence rose 2.2 per cent last week after dropping to its lowest levels since October 2020, while respondents' confidence in 'current financial conditions' jumped 6.3 per cent.

 

A survey  by ANZ and research firm Roy Morgan, found the confidence level is still well below the monthly average of 112.4 since 1990, but on a positive note the amount of respondents willing to buy a major household item increased by 6.3 per cent after a 15.8 per cent drop in the first fortnight of 2022.

 

"The recovery came in the same week that the unemployment rate was reported as dropping to its lowest in more than 13 years," David Plank, ANZ head of economics, said.

 

The more optimistic sentiment however was not consistent across the board nationwide.

 

"COVID cases appear to have peaked, though deaths unfortunately made new highs. Confidence was driven by rises of 7.7 per cent in Victoria, 8.8 per cent in WA and 3.7 per cent in Queensland," Plank said..