Confidence up slightly, mixed across states | Liverpool City Champion
Consumer confidence remains volatile, rising slightly last week amid mixed moods across states.
The ANZ-Roy Morgan Consumer Confidence Index – a gauge of future household spending – rose 0.9% to 101.1, a partial recovery from the previous week’s 2.6% drop.
“Nationally, confidence has hovered around the neutral 100 level for the past seven weeks, not heading in the same direction for more than two weeks,” Australia’s economics director told ANZ. , David Plank.
Local factors appeared to drive interstate trust, for example, rising sharply in Queensland as flooding receded there, while in Western Australia trust plummeted due to surging cases of Omicron variants.
Household inflation expectations also fell 0.1 percentage point from a seven-year high the previous week, but remained elevated at 5.2% as gasoline prices hit a new high. Mountain peak.
The Australian Petroleum Institute said on Monday the national average price of unleaded petrol hit a new record high last week, rising 3.3 cents to 183.9 cents per litre.
World oil prices rose sharply following Russia’s invasion of Ukraine.
“Based on last week’s $20 rise in Brent crude, average Australian petrol prices will soon be $2.10 a litre,” warned Commonwealth Securities chief economist Craig James.
Despite the uncertainty surrounding fuel prices, Australian small and medium-sized businesses appear to be preparing for a strong economy in 2022, with demand for equipment and machinery financing rising sharply in the first half of this fiscal year.
The Commonwealth Bank of Australia says asset funding soared 87% in the first six months of the 2021/22 financial year compared to the same period in 2020/21.
The ABC’s executive managing director of business lending, Grant Cairns, said demand for asset finance was largely driven by government incentives and businesses trying to manage supply chain disruptions.
This comes after a very challenging operating environment – extended lockdowns, Omicron and now major weather events.
“Australia’s economy looks strong in 2022 and, with expectations of rising demand, we expect continued investment in capital goods to fuel future growth,” Cairns said.
National Australia Bank will provide a broader view of the business landscape when releasing its monthly survey for February on Tuesday
Australian Associated Press