Consumer confidence has experienced a record bounce from a historical low last week, according to the latest data from Roy Morgan and ANZ.
According to the weekly consumer confidence survey, confidence posted a jump of 10.1% last week, the biggest gain since the survey shifted to a weekly basis in 2008.
All the subcomponents rose last week, except for a small decline in ‘future economic conditions.’
'Current economic conditions’ was up by 24.6% but despite this gain, this subcomponent is still 50% below its level six weeks ago.
Consumers' 'current financial conditions’ gained 8.8%, while 'future financial conditions' rose 11.4%.
ANZ head of Australian economics David Plank linked the jump in confidence to the wage support announcements made by the Federal Government last week.
"The 10.1% jump in confidence recorded in this survey was the biggest since it became a weekly survey in 2008.
"We think it represents a strong endorsement of the Government’s massive wage subsidy package, announced on 30 March.
"Better news about the flattening of the ‘pandemic curve’ may also have contributed," he said.
However, Plank said that while these numbers are positive, it's important to keep them in context.
"The bounce needs to be kept in perspective – confidence is still around the lows seen in 1990 during the last recession.
"So consumers can hardly be said to be cheerful or ready to spend but it is nice to be commenting on some better news," he said.
