Fresh indicators will shed more light on Australian consumer spending and confidence as the central bank wrestles with rising inflation.
Household spending remains a top source of uncertainty for the Reserve Bank, which has been hiking interest rates in a bid to tame soaring consumer prices.
Spending has remained fairly robust despite subdued consumer confidence, but there’s some evidence that consumers are starting to respond to higher interest rates.
Key barometers to watch this week will include the Australian Bureau of Statistics’ household spending indicator and the CommBank household spending indications report. Both reports are due on Tuesday.
Two consumer confidence measures will also be released that day. There will be a monthly report from Westpac and the Melbourne Institute, and a weekly survey from ANZ and Roy Morgan.
NAB will also release a business survey on Tuesday.
There will also be some labour market data released: ANZ’s October job ad figures will be revealed on Monday and the ABS will drop labour account data on Wednesday.
The Bureau of Statistics will release monthly business turnover indicators and building approvals data the same day.
Budget estimates hearings will also continue during the week when Treasury and finance officials will be grilled about spending within the portfolios.
Reserve Bank deputy governor Michele Bullock is expected to speak on the economic outlook.
The speech will likely draw on the latest economic forecast released last week in the RBA’s statement on monetary policy.
The bank downgraded its growth forecasts since the last pulse check in August and predicted inflation would remain stubbornly high.
US stocks rallied on Friday as investors digested rising unemployment figures, which could lead to the Federal Reserve slowing the pace of its interest rate rises.
The Dow Jones Industrial Average was up 401.97 points, or 1.26 per cent, to 32,403.22, while the S&P 500 gained 50.66 points, or 1.36 per cent, to 3,770.55.
The tech-heavy Nasdaq Composite index rose 132.31 points, or 1.28 per cent, to 10,475.25.
Australian share futures surged 91 points, or 1.32 per cent, to 6976.
The local share market ended the past week up, buoyed by a strong performance from the energy sector.
The benchmark S&P/ASX200 index finished Friday up 34.6 points, or 0.5 per cent, to 6892.5, while the broader All Ordinaries gained 38.7 points, or 0.55 per cent, to 7089.3.
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