Confidence rises for third week

The consumer confidence rating has risen to 119.4 (up 3pts in a week since August 17/18, 2013), according to the latest Roy Morgan survey.

The rise is driven by increases in confidence about prospects for the next 12 months.

Now 44% (up 2%) of Australians expect to be ‘better off’ financially this time next year (the highest since February 23/24, 2013) compared to 12% (down 2%) that expect their family to be ‘worse off’ financially.

Now 32% (up 2%) of Australians expect ‘good times’ economically over the next twelve months compared to 27% (down 3%) that expect ‘bad times’ for the Australian economy.

An increasing majority of Australians (55%, up 4%) say now is a ‘good time to buy’ major household items while just 19% (down 1%) of Australians say now is a ‘bad time to buy’.

Also 38% (up 2%) of Australians expect the Australian economy to have ‘good times’ over the next five years compared to 19% (unchanged) of Australians that expect ‘bad times’ for the Australian economy.

However, Australians are less confident about their personal finances compared to this time last year with 32% (down 1%) saying they are ‘better off’ financially than this time last year and 27% (unchanged) saying they are ‘worse off’ financially.

Gary Morgan says: “Confidence is now at its highest for more than four months, since April 20/21, 2013 (123.8). The rise in confidence comes as Liberal Party leader Tony Abbott appears increasingly likely to become Australia’s next prime minister in two weeks’ time.