As if to confirm Henry’s view that the Oz economy is ticking along nicely, on Friday we saw a significant rise in the Roy Morgan Consumer Confidence Rating
that has so far been passed over by the mainstream press. The rise of
7.1 points to 117.7 is well above the December average (though lower
than last year).
Gary Morgan notes that this Consumer Confidence rating is back to the
levels that were seen before the mid-year petrol price scare. He says:
“With the Australian dollar stable and industrial relations legislation
passed by the Senate, Australians are now focusing on the coming year.”
Australians have reason for optimism. The RBA last week delivered a
Christmas present to all borrowing Australians (though it was so
obvious they didn’t even need to wrap it) and the global economy is
ticking along nicely, ensuring our resource boom continues.
However while these factors are often quoted in consumer confidence,
one that is not is the Soccer World Cup. A recent report shows that
confidence falls in the wake of World Cup defeat. (Anyone want to
play the stock market the day of the Australia v Brazil game?).
Did Australia’s qualification in late November for next year’s World
Cup play a part in the rise in Consumer Confidence? The report suggests
no but that a defeat would have caused a fall. Henry believes the
victory might have had a slight impact (flow-on effect of prize money,
increased profile) but in essence, the Australian economy is travelling
along quite nicely in the lead up to Christmas and Australians are well
aware of it.
Read more on the Henry Thornton website.