Consumer confidence rose last week after the Reserve Bank of Australia cut the official cash rate to a new historic low.
Confidence jumped 1.7 per cent in the week ending May 10, after falling 2.8 the previous week, ANZ/Roy Morgan’s consumer confidence barometer found. ANZ chief economist Warren Hogan said the RBA’s decision to cut the cash rate to two per cent had supported households’ confidence about their finances.
“However, it is no surprise that consumers remain concerned about the economic outlook with unemployment reported to have increased to 6.2 per cent in April,” Mr Hogan said on Tuesday. “Moreover concerns around the outlook are likely to be heightened leading up to the release of the budget tonight.”