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Consumer Confidence In Australia Jumped 4.9 Points Last Week

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Consumer Confidence In Australia Jumped 4.9 Points Last Week

(CTN News) – During the period of January 2-8, the Australian consumer confidence index increased by 4.9 points, reaching 87.4, the highest level in over three months since September last year, a report revealed on Tuesday.

On Tuesday, the Australian consumer confidence index jumped 4.9 points to reach 87.4 between January 2-8, the highest level in over three months since September last year, after staying virtually unchanged at around 82.5 for weeks, according to a report released by the Australian Bureau of Statistics.

As per the report from Australia and New Zealand Banking Group (ANZ) and Roy Morgan, this week’s growth of 4.9 points also marks the first increase for the first week of January in five years.

According to Xinhua news agency, the first weekly result for January 2018 was 122.0, which was an increase of 5.5 points over the last week of December.

The mood of consumer confidence varied across some Australian states, with positive results recorded in New South Wales, Victoria, Queensland and South Australia.

In contrast, a downward trend was recorded in Western Australia.

A recent report from the Bureau of Labor Statistics revealed that expectations for weekly inflation dropped sharply from the last print of 2022, declining 0.9 percentage points to 5.0%.

As a result, it dropped 0.3 percentage points to 5.7% on its moving average over the last four releases.

Although there have been some positive signs emerging in many sub-indices, the general level of confidence is still 18.6 points lower than it was a year ago, when the same week took place.

There have been eight hikes in a row of Australia’s cash rate target, with the country’s inflation surging to a record-high of 7.3 percent since 1990, as a consequence of the country’s eight hikes in a row.

There is a slight drop of one percentage point in Australians’ perceptions of current financial conditions, with 22 percent believing their families are in a better position financially than this time last year, compared to 45 percent believing their families are in a worse position financially than this time last year, a one percentage point drop.

In addition, the report highlighted the fact that sentiment toward the economy in the long run is still very low, with only 14 percent, an increase of 2 percentage points, of Australians expecting a “good time” in the economy in the next five years, compared with 17 percent, a decrease of one percentage point, expecting a “bad time” during that period.

In spite of the new year’s boost in confidence, the long-run average of 111.7 and the neutral level (100) remain far below.

ANZ Senior Economist Adelaide Timbrell explains that household inflation expectations have lowered significantly by 0.9 percentage points since the last print of 2022, suggesting cautious optimism about lower inflation through 2023.

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