That's according to both the latest ANZ-Roy Morgan Australian Consumer Confidence index and Commonwealth Bank Household Spending Intentions (HSI) data for April. 

According to ANZ-Roy Morgan's data, consumer confidence increased 0.8% last week, due to both the warm response to the Federal Budget (the most well-received in more than a decade) and a lack of local coronavirus cases. 

"Consumer confidence increased by 0.8%, with sentiment in Sydney jumping 5.4% as no new community cases of COVID-19 were reported," ANZ Head of Australian Economics David Plank said. 

"The greater than expected spending promised by the government in the federal budget may have also provided a boost to confidence.

"Among the detail, 45% of the responders said it is a ‘good time to buy a major household item’ versus 22% for it being a ‘bad time to buy’, which are respectively the highest and lowest values since February 2020."

See also: Federal Budget 2021-22 - what's in it for savers?


Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.

Provider

4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance

High Interest Savings Account (< $250k)

  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance
4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
  • No withdrawal notice periods or interest rate penalties
  • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace

Savings Account (Amounts < $250k)

  • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
  • No withdrawal notice periods or interest rate penalties
  • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace
000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
*Rate varies on savings amount
  • Deposit $500 per month to get bonus interest
  • No balance growth needed or card transactions necessary.
  • Tiered bonus rates apply. Earn our best rate on your first $100k. (TMDs at ubank.com.au)
  • 5.50% p.a. available on total savings up to $100K.
  • 5.00% p.a. applies to savings between $100K-250K.
*Rate varies on savings amount

Save Account (>$100,000)

  • Deposit $500 per month to get bonus interest
  • No balance growth needed or card transactions necessary.
  • Tiered bonus rates apply. Earn our best rate on your first $100k. (TMDs at ubank.com.au)
  • 5.50% p.a. available on total savings up to $100K.
  • 5.00% p.a. applies to savings between $100K-250K.
010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Deposit at least $1,000+ each month from an external source
  • Make 5 or more eligible transactions
  • Grow your savings balance each month

Savings Maximiser (<$100k)

  • Deposit at least $1,000+ each month from an external source
  • Make 5 or more eligible transactions
  • Grow your savings balance each month
40501$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Earn up to 5.25% p.a. interest on balances up to $1M. T&Cs apply.

Reward Saver (< $1M)

  • Earn up to 5.25% p.a. interest on balances up to $1M. T&Cs apply.
05001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

Goal Saver

    0200$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

    Bonus Saver Account (Amounts < $250k)

      010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
      For customers aged 14-35 years
      For customers aged 14-35 years

      Future Saver Account ( < $50k)

        010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

        Boost Saver

          Important Information and Comparison Rate Warning

          All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of July 15, 2024. View disclaimer.

          The consumer confidence level of 112.5 is almost exactly the same as the rolling four-week average of 112.3, as well as the monthly average of 112.6 since 1990. 

          ‘Time to buy a major household item’ gained 6.2%, ‘Current financial conditions’ rose 1.6%, while ‘future financial conditions’ expectations were up 0.1%.

          These numbers are much higher compared to 12-months prior, when confidence and future expectations plunged to near-record lows at the beginning of the COVID crisis. 

          Another consumer confidence index - the Westpac-Melbourne Institute consumer sentiment survey - reported a low point of 75.6 in April 2020

          ANZ's weekly data meanwhile found the four-week moving average was as low as 84.2 at this point in 2020. 

          ANZRM1.JPG

          Related: House price increases weigh on consumer confidence

          Home buying, entertainment spending intentions climb 

          A year on from April 2020's lockdown-induced lows, spending intentions across all seven categories tracked by Commonwealth Bank (CBA) showed "strong improvement, in a sign the economy advanced its recovery in April". 

          “This comes as no surprise as we know that April 2020 was the low-point for spending as the first wave of Covid-19 restrictions hit Australians,” said CBA Chief Economist Stephen Halmarick.

          “A year later, the economy has recovered strongly from Covid-19 impacts, with employment above pre-pandemic levels and household spending intentions on the rise as consumers once again feel confident about their economic prospects."

          The HSI series covers around 55% of Australia's total consumer spend across; retail, travel, education, entertainment, motor vehicles, and health and fitness.

          In particular, home buying intentions continued to surge, as both loan applications and related Google searches increased. 

          Travel spending intentions "skyrocketed" compared to 12 months ago when almost all travel was halted, while entertainment spending in particular was also much higher at bars and pubs, restaurants, movie theatres, and live theatre.

          Related: Travel bubble, discount flights boosting confidence and spending already

          According to Mr Halmarick, the increase in spending intentions across all of these was reflected in last week's budget. 

          “The Budget’s targeted support programs aim to put more people into jobs and ensure the economic recovery is widespread,” Mr Halmarick said.

          “We expect the residential property market to be a key source of support for Australia’s economy in 2021, driven largely by the very low level of interest rates."


          Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

          Lender

          VariableMore details
          4.6 Star Customer Ratings
          • No monthly or ongoing fees
          • Unlimited free redraw
          • No application fee
          4.6 Star Customer Ratings

          loans.com.au – Variable Home Loan (LVR < 90%)

          • No monthly or ongoing fees
          • Unlimited free redraw
          • No application fee
          VariableMore details
          Apply In Minutes
          • No application or ongoing fees. Annual rate discount
          • Unlimited redraws & additional repayments. LVR <80%
          • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
          Apply In Minutes

          Unloan – Variable Rate Home Loan LVR < 80%

          • No application or ongoing fees. Annual rate discount
          • Unlimited redraws & additional repayments. LVR <80%
          • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
          VariableMore details
          Unlimited Redraws
          • No annual fees - None!
          • Get fast pre-approval
          • Unlimited additional repayments free of charge
          • Redraw freely - Access your additional payments when you need them
          • Home loan specialists available today
          Unlimited Redraws

          ubank – Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

          • No annual fees - None!
          • Get fast pre-approval
          • Unlimited additional repayments free of charge
          • Redraw freely - Access your additional payments when you need them
          • Home loan specialists available today
          Important Information and Comparison Rate Warning

          Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of July 15, 2024. View disclaimer.

          Photo by krakenimages on Unsplash