Concerns surrounding the economy don't seem to have filtered down to businesses and consumers, as the latest research points to increased confidence across the board. Two major indicators show that economic perceptions are improving, and it could translate into greater spending.
The ANZ-Roy Morgan Consumer Confidence Index was up 0.6 per cent during the week to August 18, bringing it to the highest level seen in the past one-and-a-half months. Meanwhile, CommBank's July Business Sales Indicator showed a 0.6 per cent increase in economy-wide spending.
"Spending is still growing at an above-average pace, consumer confidence is also above short and longer-term averages and the outlook for the job market has improved," summarised CommSec Chief Economist Craig James.
With people and businesses generally more hopeful about what the future has in store, their attention may start to turn to major tasks and investments. In light of this, demand for generator hire and other equipment may benefit.
The results from ANZ and Roy Morgan showed that people's perception of their own finances compared to a year ago has risen 1.7 per cent. Meanwhile, medium-term economic confidence has witnessed an 8 per cent increase.
Chief Economist at ANZ Warren Hogan said Australian consumers are usually very reactive towards any changes in the global economy, but this doesn't seem to have been the case recently
Mr Hogan continued: "While concerns around the Greek debt crisis and volatility in the Chinese equity markets worried consumers just a few weeks ago, confidence has remained broadly steady in the face of last week's Chinese exchange rate devaluation."
Confidence appears to be high across the country at present, as the CommBank results show that every state and territory besides the Northern Territory showed signs of spending growth in July. The increase was strongest in the ACT, where spending was up 1 per cent.
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