The ANZ-Roy Morgan Australian Consumer Confidence index rose by 1.2 per cent from the previous week, although the “time to buy a household item” metric dropped 2.9 per cent.

“Consumers are upbeat about both their personal outlook and the economy in general,” ANZ economist David Plank said this morning.

“The prospect of lower interest rates and what appears to be a major sentiment shift on the housing market are likely drivers of the positive outlook”.

The weekly measure of consumer confidence is based on about 1,000 face-to-face interviews conducted on Saturdays and Sundays.

Survey respondents indicated they were anticipating lower levels of inflation.

“This is the fifth sub-4.0 per cent reading since early March – an unprecedented run of low results for this survey,” Plank said.

The Reserve Bank of Australia, which makes its next decision on interest rates on June 4, has indicated a combination of low inflation and a higher jobless rate will compel it to cut from an already record low of 1.5 per cent.

“Members discussed the scenario where inflation did not move any higher and unemployment trended up, recognising that in those circumstances a decrease in the cash rate would likely be appropriate,” the RBA minutes from May said.

– AAP

Want to comment?

Send us an email, making it clear which story you’re commenting on and including your full name (required for publication) and phone number (only for verification purposes). Please put “Reader views” in the subject.

We’ll publish the best comments in a regular “Reader Views” post. Your comments can be brief, or we can accept up to 350 words, or thereabouts.

InDaily has changed the way we receive comments. Go here for an explanation.