Confidence jumps

Consumer confidence has jumped 5.7 points in a week to 124, the highest figure in two years and 7.4pts higher than this time last year.

The rise, according to Roy Morgan, is driven by increasing optimism about personal finances, and buying of major household items.

A larger majority of 63% (up 7%) of Australians say now is a ‘good time to buy’ major household items (the highest since January 7/8, 2012) compared to just 12% (down 4%) that say now is a ‘bad time to buy’ major household items (the lowest since January 8/9, 2011).

Now 32% (up 4%) of Australians say their family is ‘better off’ financially compared to a year ago while 28% (down 2%) say their family is ‘worse off’ financially.

Australians are also more positive about their personal finances over the next 12 months with 45% (up 5%) saying they expect their family to be ‘better off’ financially (the highest since April 10/11, 2010) while only 13% (down 2%) expect to be ‘worse off’ financially (the lowest since January 15/16, 2011).

Now 40% (up 2%) of Australians expect ‘good times’ for the Australian economy over the next five years (the highest since May 7/8, 2011) compared to 16% (down 2%) that expect Australia to have ‘bad times’ economically (the lowest since May 14/15, 2011).

34% (unchanged) of Australians expect ‘good times’ for the Australian economy over the next twelve months compared to 25% (down 1%) who expect ‘bad times’ economically (the lowest since April 23/24, 2011).

Gary Morgan says: “The resolution of the so-called ‘Fiscal Cliff’ in the United States has given a definite boost to investors worldwide and locally with the All Ordinaries rising to 4760 (up almost 100pts this year)  – at its highest level since May 2011, and the Australian Dollar strengthening to almost $1.06 USD (up from under $1.04 USD at the end of 2012) – both additional indicators of rising confidence in Australia.”