According to a survey by the Australia and New Zealand Banking Group (ANZ), the Australian consumer confidence index rose by 1.7% last week, the first increase in more than a month. The decisive factor was the unemployment rate in Australia, which fell to its lowest level in almost 50 years.
According to ANZ, consumer confidence has recovered after falling 7.7% in the previous four weeks.
According to the ABS, the unemployment rate in Australia was 3.9% in April, the lowest level in almost 50 years, as companies created more full-time jobs, indicating a tighter labor market. However, this could increase pressure on the central bank to raise the key interest rate in the future.
The Reserve Bank of Australia (RBA) has signaled that it will continue to raise interest rates. After a 0.25% increase at its May 3 meeting, this was the first rate hike in 12 years.
The RBA raised rates after the Australian Bureau of Statistics reported that the consumer price index (CPI) rose to 5.1% in the first quarter of 2022, the highest level in 20 years.
The RBA cited rising domestic demand and supply chain problems, including the impact of the war in Ukraine, as reasons for the high inflation. These factors led to higher commodity and food prices.