By James Glynn
SYDNEY--Australian consumer confidence rose slightly last week, but overall readings remain as bleak as they were shortly after the outbreak of the Covid-19 pandemic in early 2020.
Consumer confidence increased slightly by 0.7% last week after a 0.2% increase the week before, according to a survey by ANZ Bank and pollster Roy Morgan.
ANZ head of Australian economics David Plank said the improvement reflected more upbeat sentiment around the current financial situation compared to a year ago, and whether it is a good time to buy a major household item.
Household inflation expectations rose by 0.2 percentage points to 6.0%, the survey showed.
The likelihood of grim news headlines this week about another surge in actual inflation when second-quarter data are published on Wednesday will likely place some downward pressure on sentiment this week.
Economists expect to see the biggest rise in inflation in 30 years, supporting expectations that interest rates will continue rising at their fastest pace since the 1990s.
Sentiment around current financial conditions rebounded 6.9% last week after a 17% drop over the previous 10 weeks. Future financial conditions were down 2.1%. Time to buy a major household item gained 5.2% after a 10.7% loss over the previous three weeks, the survey showed.
The weekly ANZ-Roy Morgan consumer confidence survey is based on 1,496 interviews conducted online and over the telephone during the week to Sunday.
Write to James Glynn at James.Glynn@wsj.com
(END) Dow Jones Newswires