New Prime Minister Malcolm Turnbull gave an immediate boost to Consumer Confidence across a range of key demographics last week.
ANZ-Roy Morgan report that Australian Consumer Confidence jumped by a one-week record 9.2pts – from 105.3 following Turnbull’s swearing in as Australia’s 29th Prime Minister .
The increase to Consumer Confidence was broad-based with Consumer Confidence increasing strongly for both genders, across all age groups and all States & Capital Cities.
In particular Consumer Confidence in Australia’s two largest commercial centres increased more strongly than other cities: Sydney – 107.6 to 117.4 (up 9.8pts) and Melbourne – 104.4 to 119.2 (up 14.8pts).
This strong endorsement of the new Prime Minister from Australia’s consumers gives Turnbull a clear ‘mandate’ to pursue reforms to the Australian economy to ensure strong future growth and to make the structural adjustments necessary to make the Australian economy more competitive as it deals with the end of the commodities boom and the closure of legacy manufacturing industries – the manufacturing component of the Australian car industry is due to close entirely by the end of next year.
Looking closely at the five Consumer Confidence indicators shows the strongest positive reaction was in regards to the Australian economy.
Sentiment regarding the Australian economy over the next 12 months increased the most strongly with 31% (up 10ppts) of Australians expecting ‘good times’ for the Australian economy over the next 12 months and only 28% (down 11ppts) expecting ‘bad times’.
This is the first time this indicator has been in positive territory since November 2014 nearly one year ago.
Good times ahead
In addition, now 33% (up 7ppts) of Australians now expect ‘good times’ for the Australian economy over the next five years and just 23% (down 6ppts) expect ‘bad times’ – a positive differential of 10ppts.
This is the best result on this measure since just after this year’s Federal Budget in May.
The strong increases in both of these indicators show Australians believe Turnbull will provide better economic leadership, along with new Treasurer Scott Morrison, than the outgoing team of former Prime Minister Tony Abbott and former Treasurer Joe Hockey.
Turnbull has already indicated a key area of change for his Government will be a renewed focus on improving Australia’s infrastructure – particularly in Australia’s largest urban centres.
Strengthening investment in infrastructure will provide a strong impetus for the economy as it faces the challenges touched on above.
In addition to increased investments on the home front, there is the prospect of increasing trade and investment with Australia’s largest trading partners – most of which are in the Asia-Pacific region.
Turnbull boosts ANZ-Roy Morgan Consumer Confidence in key demographics
Analysis by State – Turnbull boosts ANZ-Roy Morgan Consumer Confidence in all States