Consumer confidence continued to increase on the latest Roy Morgan surveys.
In-store card spending also crept higher, to increase to a 9-month high.
Source: Commsec
Inflation expectations slipped a little lower, however, and remain substantially below pre-pandemic levels.
Weekly payrolls increased again this week to the highest level in 8 months - James Foster with the charting:
Source: James Foster via ABS
The state of Victoria suffered the biggest hit, but is now recovering, while South Australia suffered a blip from its own 'Pizzagate' shutdown.
But overall, improvement is happening.
Source: James Foster
Support to continue
It seemed likely the the Reserve Bank would need to keep support in place until there are defintive signs that we are approaching NAIRU or full employment, which is likely to mean an unemployment rate of about 4½ per cent or thereabouts.
Obviously that's a long way from where we are today at about 7 per cent, and the latest Board Minutes did suggest that the Board is prepared to do more if necessary:
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Source: RBA
Bill Evans of Westpac revises his forecast for the size and duration of QE, out until the end of 2022:
Source: Westpac
Brrr.
