According to the latest weekly reading from ANZ-Roy Morgan research, consumer confidence is currently at its second highest level over the year and 2.6% above the long-term average.
Indeed, coinciding with a 4% rally in the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) in the first full week of October, consumer confidence across the country jumped 5.1%.
Australia and New Zealand Banking Group (ASX: ANZ) Chief Economist Warren Hogan said, "Consumer confidence climbed to a 15-week high last week, confirming an uplift in momentum since the appointment of Prime Minister Malcolm Turnbull."
"The lift in confidence has coincided with a rise in equity markets and a stronger Australian dollar, suggesting confidence is in some part tied to financial market sentiment," Mr Hogan added. "The strong rise in views towards the economic outlook likely reflects faith in the Turnbull government."
Digging a little further into the result, Australians' perception of strength in economic conditions in the next five years increased 10% from a week earlier. The view of our personal finances also jumped 6.6%, to the highest levels of early 2014.
Quality Australian retailers like Harvey Norman Holdings Limited (ASX: HVN) and JB Hi-Fi Limited (ASX: JBH) will also welcome news of a 0.6% jump in response to the question of: 'now is a good time to buy a major household item?'
This follows weeks of falls in the reading. However, the reading is still 5% below its long-term average, indicating there is still plenty of work to be done.
Foolish takeaway
A jump in confidence levels following the appointment of a new leader is not to be unexpected.
However, before getting overly excited by the result, it's important to remind ourselves that this is just one week's report and, as ANZ noted, a sustained recovery in confidence will not be easy for the government.
Nonetheless, they're off to a good start, and the sharemarket is benefiting – big time!
