Consumers in Sydney and Melbourne are more optimistic | The Northwest Star

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The prospect of leaving coronavirus lockdowns has uplifted the mood among the Sydneysiders and Melburnians, but confidence in other parts of the country has turned sour. Overall, the ANZ-Roy Morgan Consumer Confidence Index – an indicator of future household spending – rose 0.9% last week. It was the fourth consecutive weekly increase, bringing the index to its highest level since mid-July, but at an index of 104.6, it is still far from its long-term average of 112.5. “As Sydney and Melbourne head towards reopening in the coming weeks, confidence in the two cities has increased by 4.4% and 1.5% respectively,” said ANZ’s Australian chief economic officer, David Plank. However, confidence in the Victoria area fell 4.1%, and there was a 2.1% drop in Adelaide, while Brisbane fell 9% and Perth fell 6.2%. Meanwhile, Australia’s construction industry saw some rebound in September as strong engineering activity more than offset further declines in home construction and commercial construction. The Australian Industry Group / Housing Industry Association’s construction performance index rose 14.9 points to 53.3 in September, with the move above 50 indicating that the sector is back in territory. expansion. “Looking ahead, the further easing of restrictions and the resumption of suspended work should see a more decisive improvement in the sector in the months to come,” said Peter Burn, chief policy adviser to Ai Group. Economists expect the Reserve Bank of Australia to stick to its prospect of keeping the cash rate at an all-time high until 2024, when its board of directors will meet later on Tuesday . The so-called “shadow RBA board”, made up of economists and academics from Australian National University, is 100 percent behind keeping the cash rate at an all-time high of 0.1 percent. He says closures in the two most populous states, NSW and Victoria, have clearly blocked economic recovery. “But high vaccination rates, a phasing out of stay-at-home orders and the prospect of relaxing national and even international travel restrictions are expected to revive the national economy as the Christmas season approaches,” he said. he declared. Economists will be looking for clues from RBA Governor Philip Lowe’s post-meeting statement on when restrictions on home loans could be introduced to ease some of the heat in the Australian housing market. The Board of Financial Regulators, of which the RBA is a member, warned last week that while lending standards have not come down so far, they are considering policies to curb activity before indebted households become a risk to the economy. Associated Australian Press

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