Consumer confidence climbs higher

Portrait of clothing store owner

(Australian Associated Press)

Consumer confidence has nudged higher because customers are happier with their personal finances.

The ANZ-Roy Morgan consumer confidence index rose 0.6 per cent to 112.5 points in the week to July 26, following a 4.5 per cent lift the previous week.

But levels remain subdued, down 3.2 per cent, on a year-on-year basis, according to the survey.

The weekly increase was driven by an improving perception among respondents of their personal finances, which was partially offset by easing confidence in the economic outlook.

ANZ chief economist Warren Hogan said households’ confidence in money matters probably reflects low interest rates and high household wealth.

However, it is not translating into the same strength in consumer spending as seen previously, he said.

“This is likely to be driven by weak wages growth and consumers continuing to pay down debt,” he said.

“As such, consumer spending is likely to remain below trend and a key impediment to a lift in economic growth.”

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