The latest consumer confidence data from ANZ-Roy Morgan came with a rise of 2.1% in August, the first increase in the index for more than two months. People in Melbourne were also more positive with the index rising 5.1% as Covid-19 cases trended down but the city still has the lowest consumer confidence of all major capital cities behind Sydney (up 3.3%), Brisbane (down 2.6%), Adelaide (up 4.9%) and Perth (up 2.4%).
However, consumer confidence is still 24.2% lower than a year ago. Driving the increase week was increasing confidence, and fewer concerns, about personal financial situations and Australia’s economic performance over the next year.
“The positive July labour market data, which was better than market expectations, may have contributed to the lift in sentiment,” according to ANZ head of Australian Economics, David Plank.
He said while confidence of Melbourne consumers lifted the most, it followed seven straight weeks of falls, so a tick-up was due.
“With confidence remaining at a level that is well below average we aren’t getting too carried away by the positive result. Consumers are still very cautious about the outlook,” he said.