Consumer Confidence Holds Recent Gains

By now you probably know I like to track consumer confidence because it is a good forward indicator of property trends.

Strong consumer confidence leads to more people buying property and the opposite is of course also true.

Over the last week ANZ-Roy Morgan Consumer Confidence fell 1.0% to 113.5, following strong growth in the previous fortnight.

Confidence has been trending above its long run average for two continuous weeks, following a five month run of below average growth – see below:


Confidence remains well above levels this time last year (14.3%), following the release of the 2014 Commonwealth Budget.

Consumers continue to remain more concerned about economic conditions which are around 7% below their long run average.
In particular, consumers’ views towards ‘economic conditions in the next 12 months’ fell 5.3%, offsetting only around half the rise in the previous week.
By contrast, households views towards their finances remain above average with views about finances in the next 12 months up 2.7% last week.

ANZ Chief Economist Warren Hogan commented:

“The fall of 1.0% in ANZ-Roy Morgan Consumer Confidence last week only slightly reverses the lift seen in the previous two weeks.

Confidence now appears to be trending higher following the government’s Budget. In level terms it is hovering just above its long term average.

The response to the Budget this year has been much more positive than last year, and confidence now stands around 14% higher than levels recorded a year ago.

While consumers have reacted more positively towards the government’s 2015-16 Budget, the sustainability of this lift in confidence, and indeed, the prospects for further gains in confidence will be reliant on a number of factors.

The lift in confidence is unlikely to be sustained if key measures do not pass through the parliament.

More importantly, confidence amongst consumers requires job creation and a stable, or better still, falling unemployment rate.

As a key driver of employment, the outlook for business investment is now one of the main factors influencing consumer confidence in Australia.

In this regard, we keenly await Thursday’s CAPEX numbers, including the survey of capex expectations.”


Subscribe & don’t miss a single episode of Michael Yardney’s podcast

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

Need help listening to Michael Yardney’s podcast from your phone or tablet?

We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.


Prefer to subscribe via email?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.

Michael Yardney


Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media. Visit

'Consumer Confidence Holds Recent Gains' have no comments

Be the first to comment this post!

Would you like to share your thoughts?

Your email address will not be published.


Copyright © Michael Yardney’s Property Investment Update Important Information
Content Marketing by GridConcepts