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Spike for national consumer confidence

By Jamil Allouche

Consumer confidence usually gives a fairly good indication of what's going on in both the national economy and people's finances – and the latest results are particularly impressive. During the week to 21 June, the ANZ-Roy Morgan Consumer Confidence Index reached its highest level since November 2013, as Australians revealed just how optimistic they are.

One of the biggest jumps was in the people's perceptions towards their finances compared to a year ago sub-index, up 3.1 per cent from a week earlier. Meanwhile, their view of their finances over the next 12 months marked a rise of 1.1 per cent. This could be good news for Brunswick East property, as people feel confident enough to go in search of the lending they need.

Felicity Emmett, head of Australian economics at ANZ, explained there are various reasons for this upswing in sentiment, but there's one in particular that stands out.

"The strength in the labour market in particular is likely to have been a key factor in the improvement in consumer confidence over recent months," Ms Emmett commented.

"And, as we've highlighted previously, it's likely to continue to be a key driver of confidence."

Where is confidence heading?

Although the groups identified there could be two issues affecting confidence in the future – Brexit and the forthcoming federal election – there's nevertheless plenty of room for optimism.

Not only are job prospects improving, but as the Real Estate Institute of Australia (REIA) recently revealed, property affordability is starting to improve. The Adelaide Bank/REIA Housing Affordability Report showed that the proportion of household income needed to pay off a mortgage has fallen over the past few months – welcome news if you want to buy real estate in Brunswick East.

All eyes will be on future indices to find out just where sentiment is heading, but for the time being at least, it's proving to be just in the right place.

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