ANZ says the strong GDP report apparently drove the the rise in consumer confidence and this shows quarterly economic growth of 1.1 per cent in the first three months of the year is the fastest of the last three years.
According to ANZ reports, consumer confidence index rised 3.2 per cent in the past week, more than offsetting the 2.2 per cent decline of the previous seven days and now the confidence stands at its highest level since 2014. "Australians' perceptions of the economic outlook have likely been bolstered by the stronger than expected GDP data released last week," ANZ head of Australian economics Felicity Emmett said.
The increase in confidence was broad based, but consumers' views of the economic outlook led the gains, ANZ said. According to the economists said the economic growth is at its highest and its normal that consumer confidence is strong. Consumers are also more optimistic about their finances with the indicator on "finances in the next 12 months" up 2.5 per cent and "finances compared to a year ago" up 0.5 per cent.
"We expect that confidence will remain sensitive to developments in the domestic economic data, as well as the evolution of the political debate in the lead-up to the July election," ANZ head of economics Felicity Emmett said. Former prime minister John Howard joined that debate as he campaigned in Adelaide, saying that in any election there is nothing more important as managing the economy.