Consumers confident thanks to job stats

Petrina Berry
(Australian Associated Press)

 

Consumer confidence has ticked up modestly following better-than-expected jobs numbers.

The ANZ-Roy Morgan Consumer Confidence Index for the week to May 21 rose 1.0 per cent to 110.5 points, which is above the 100-point market separating optimism from pessimism.

ANZ head of Australian economics David Plank says the modest rise in confidence is quite encouraging, especially given the recent downward pressure negative news surrounding US President Donald Trump had had on the local share market.

“It appears confidence was buoyed by the second consecutive solid jobs report out last week, which included a drop in the unemployment rate,” Mr Plank said.

He said the labour market is expected to continue to improve as official figures play catch up with survey-based measures of employment.

“This should broadly support confidence, although we are unlikely to see a rapid increase given ongoing low wage growth,” he said.

“Additionally, in the near term, confidence remains at risk to any changes in the global political environment.”

Australia’s official unemployment rate fell to 5.7 per cent in April, with the number of people employed rising by 37,400, beating expectations of a 5.9 per cent jobless rate and 5,000 added jobs.

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