February 28, 2025, Perth, Australia – Parker Blackwood Advisers recognized a marked improvement in consumer confidence following the recent Reserve Bank of Australia’s (RBA) lowering of the official cash rate to 4.1%, a reduction of 25 basis points. This has resulted in ANZ-Roy Morgan’s Consumer Confidence Index rising by 4.7 points to 89.8, the highest level since May 2022.
About the matter, Parkers Blackwood Advisers’ Chief Executive Officer, Leigh Jamieson, commented: “The RBA’s rate cut has provided a shot in the arm for consumer sentiment across Australia. This boost in confidence is therefore a good leading indicator for economic activity over the coming months.”
The rise in confidence was felt right across the country, although in Western Australia it is reported to have been felt more strongly, indicating a fast recovery in consumer sentiments which would now be expected to further assist economic activity.
Jamieson added, “Better assessments of personal financial situations are encouraging. As more Australians feel financially better off, we expect that to have a positive ripple impact on consumer spending and investment behaviors.”
The Westpac-Melbourne Institute Leading Index also confirms the pleasant trend, ramping up to a six-month annualized growth rate of 0.58% in January, compared to 0.24% in December, representing the highest predicted growth of the economy since July 2022.
For now, Parker Blackwood Advisers remains ever watchful on developments and to assist their clients with their endeavors in this ever-changing landscape. Please contact Parker Blackwood Advisers by calling info@parker-blackwood-advisers.com
