Consumer outlook boost

Survey shows public could spend more after quiet Christmas

AUSTRALIAN consumer confidence has improved after more encouraging jobs and retail news and milder weather eased the bushfire crisis.

The ANZ-Roy Morgan Australian Consumer Confidence index gained 1 per cent last week after news on building approvals, job vacancies and retail sales.

The weekly measure of consumer mood, released yesterday, is based on about 1000 face-to-face interviews conducted in people’s homes on Saturdays and Sundays.

The result offers hope for some recovery in consumer spending after what appears to be a very subdued Christmas retail season, ANZ Head of Australian Economics David Plank (pictured) said as the report was released.

“With milder weather seeing the intensity of fires diminish, though not by enough to prevent further tragic loss of life, and some better economic news in the form of building approvals, job vacancies and retail sales, it is not surprising that much of the weakness in economic conditions reversed,” Mr Plank said.

The news of the rise in consumer confidence comes after the popularity of Black Friday sales fuelled a better-than-expected retail turnover in November, but economists are wary of how much of the 0.9 per cent increase would previously have been spent during December.

Consumers shelled out a seasonally adjusted $27.91 billion on retail in November, according to Australian Bureau of Statistics data with shoppers dropping the most at department stores, and on clothing, footwear and personal accessory retailing.

The result snapped a streak of four consecutive months of retail trade undershooting consensus expectations.

BIS Oxford chief economist Sarah Hunter said it remained to be seen how the result affected the traditionally strong pre-Christmas period.

“Some retailers have reported that December was disappointing, suggesting that total spending in the run-up to Christmas was fairly subdued,” she said.