FINWIRES · TerminalLIVE
FINWIRES

Australian Consumer Confidence Rises as Inflation Concerns Ease

By

The ANZ-Roy Morgan Australian consumer confidence rose 3.5 points to 74.7 in the week of July 27 to Aug. 2, ANZ reported Tuesday.

The four-week moving average was flat at 74.2, per the report.

Australian consumer confidence improved last week, as stronger expectations for personal finances and easing inflation concerns boosted sentiment, reinforcing expectations that the Reserve Bank of Australia (RBA) will hold rates steady at its August meeting, according to ANZ economist Sophia Angala.

The risk of a rate hike in November remains, as inflation expectations are still elevated compared with the start of the year, while renewed Middle East tensions may keep the RBA cautious about rising inflation pressures, Angala added.

Weekly inflation expectations fell to 5.5% from 5.9%, while the current financial condition indicator for 12 months increased 1.3 points to 65.2. The future financial conditions for the next 12 months rose to 83.9 points from 77.

Short-term economic confidence for the next year rose 1.9 points to 66.8, while medium-term economic confidence for the next five years increased to 80.2 points from 77.3.

The "time to buy a major household item" subcategory gained 4.9 points to 77.6.

Related Articles

International

India's RBI Swap Facility Draws $40.8 Billion in Forex Inflows

India attracted $40.8 billion in foreign currency inflows under the Reserve Bank of India's concessional swap facility as of July 31, according to a Reserve Bank of India release on Friday.The inflows included $36.7 billion in FCNR(B) deposits, $2.6 billion in overseas foreign currency borrowings, and $1.5 billion in external commercial borrowings.The central bank launched the swap facility in June to encourage fresh inflows of foreign currency.

^BSENifty 50
International

Decreasing Diesel Prices Help Keep New Zealand Construction Cost Growth in Check, QV Says

A drop in diesel prices helped keep construction cost growth in check in New Zealand in July, QV said in a report on Monday.Diesel prices fell sharply month over month in July, declining nearly 21%, helping to reduce costs in fuel-intensive areas of construction work. Excavation, which fell 4.5%, saw the largest average reduction in both June and July."Diesel has fallen from June to July, and that saving has flowed through to some of the trades most exposed to fuel costs," QV CostBuilder spokesperson Martin Bisset said, adding that overall costs remained broadly stable.Concrete blockwork prices increased 0.8%, while concrete rose 0.9%, the report said. Expanded polystyrene sheet was up 9.3%, aquatherm pipework by 7.5%, and copper pipework by 4%.

^NZ50
International

New Zealand Property Values Continue Subdued Trend With 0.3% Fall in July, Cotality Says

New Zealand's home value index fell 0.3% in July following a decline of the same magnitude in the previous month, continuing a subdued trend observed during the first six months of the year, Cotality said in an Aug. 1 report.The national median property value of NZ$804,303 in July was down by 1% from three months ago and down 0.7% from a year earlier, according to the report.Values remain nearly 18% below their January 2022 peak, but 16% above the pre-pandemic level from March 2020, Cotality said."Property sales volumes have inched lower so far this year, although they're still at a relatively normal level," said Cotality NZ Chief Property Economist Kelvin Davidson. "But the stock of listings remains elevated and this is giving buyers the balance of power when it comes to pricing.""Mortgage rates haven't moved much in recent weeks, but the likelihood is that some rises are on the cards again in the short term," Davidson added.The report pointed to broad-based falls in values across Auckland's sub-markets in July, with Rodney and Papakura posting relatively modest drops of 0.2% and Franklin dipping by 0.3%. But in the country's other four main areas, there was a uniform drop of 0.6% in July.

^NZ50