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Turnbull elevation boosts confidence

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A change in prime minister has helped boost consumer confidence.

The ANZ/Roy Morgan weekly consumer confidence index rose 8.7 per cent the week Malcolm Turnbull became PM, bouncing back from three weeks of falls.

ANZ chief economist Warren Hogan said the change in Prime Minister was the most likely reason for the surge in confidence.

“The sharp jump in consumer confidence last week is a clear vote of confidence in the new Prime Minister, Malcolm Turnbull,” he said.

However, Hogan said, the new PM would need to deliver on the economy to maintain the confidence bounce.

“We believe the new prime minister’s first 100 days in office will be essential to formulating a new narrative for the economy that underpins confidence in the economic outlook,” he said.

“The challenge for the Prime Minister is to effectively communicate that changes to the way the economy operates are in the community’s medium-term interest and necessary to raise incomes, create high-value jobs, and sustain investment.”

Hogan said expectations for the Turnbull were clearly high, not unlike when the coalition won government in September 2013, with Tony Abbott as leader.

“The community will be sensitive to disappointment on this front,” Hogan said.

“Consumer caution and gloom in the long-term outlook could easily re-emerge, given weak wages growth and sub-par global economic activity.”

The ANZ survey was conducted the weekend after Turnbull defeated Abbott in a Liberal leadership spill on September 14.

– AAP

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