Economic analysts often keep a close eye on how well consumer confidence is performing – and with good reason. It has the potential to make or break various parts of the national balance sheet, from retail sales to the number of Gold Coast property developments given the go ahead.
Results of the latest ANZ-Roy Morgan Australian Consumer Confidence should therefore give plenty of cause for celebration, as they show an upswing in sentiment. During the week to 21 June, the index posted a 2.1 per cent rise, bringing the overall reading to 118.8.
To put this into context, the last time the reading was this high was November 2013. People are therefore more hopeful about what the future might have in store, even though there’s the potential for some pretty strong financial and political headwinds to soon take hold.
Sources of uncertainty
ANZ head of Australian economics Felicity Emmett highlighted just some of the reasons why sentiment could take a tumble over the next few months.
Firstly, there’s the upcoming federal election. Political uncertainty usually doesn’t bode well among everyday Australians, although the signs so far suggest they’ve been largely undeterred by the prospect of another leader taking charge. It might just be that Australians have become accustomed to changes in prime minister, but only time will tell.
Next on the agenda is the UK’s vote on its membership of the European Union. Voters will decide on 23 June, with the results expected to follow soon after. This has the potential to cause disruption for the global financial markets, with policymakers already warning of the ripple effect it could have across the world.
As is often the case, it won’t be apparent just how much of an impact these events will have on confidence until they’ve actually happened. There is, of course, plenty of speculation, but it will only be a matter of weeks before the full effect really comes into view.
Why people are so optimistic
However, the crux of the ANZ-Roy Morgan results show that people are still largely undeterred by these issues. Australians were shown to be more optimistic about the future of their finances, with their perception of their situation compared to a year ago up 3.1 per cent from the previous week.
It’s not only consumers who are buoyant at the moment, either, as the June NAB Business Survey also points to higher levels of confidence. The non-mining recovery is gathering pace, which could lead to other areas of the national accounts gaining some momentum.
Construction has been a standout performer for some time now, bringing more property developments on the Gold Coast to the market. The services sector has also picked up pace, as have distributional services.
Consumer and business confidence are generally interlinked, so this could be another reason why everyday Australians are more hopeful about the future. There’s also the fact that job prospects are improving, which could eventually make a positive impression on the unemployment rate.
Make the most of a good situation
All the indicators suggest that now is a good time to make a Gold Coast property investment – so why not get in touch to find out more? Our experienced team is available to talk you through your various options and show you some of the most up -and-coming developments in this popular part of the country.
Don’t worry if you’re new to investing, our expertise means we can take you through every step of the process so you are entirely happy with the decisions you’ve made. There’s a reason why people are so optimistic at the moment – so cash in and make the most if it!