ANZ’s head of Australian economics, David Plank, said confidence has been gaining traction for the second straight week and is now well above its long-run average.
According to data from the bank and Roy Morgan, consumer confidence rose 1.9 per cent over the last week, building on a 0.3 per cent increase from the previous week.
Mr Plank said that “the federal government’s tax refunds for low and middle-income earners look to be boosting sentiment, particularly in the case of the ‘time to buy a household item’ subindex”.
ANZ reported that the major household item index had gained 3.5 per cent after losing 4.4 per cent previously.
The four-week moving average for inflation expectations was also up 0.1 percentage point to 4.1 per cent.
Mr Plank also gave credit to the statement from RBA governor Philip Lowe that interest rates would remain low for an extended period as “likely to have helped support confidence, pushing equities to [a] 12-year high”.
Grace Ormsby is a journalist for Momentum Media's Nest Egg.
Before moving into the finance realm, Grace worked on Nest Egg's sister site Lawyers Weekly, and was previously a staff reporter at the NSW Business Chamber.
She holds a Bachelor of Communication (Journalism), a Bachelor of Laws (Hons) and a Diploma of Legal Practice from the University of Newcastle.