Multiple ASX 200 consumer shares are in the green today amid new retail and business sentiment data.
The Harvey Norman Holdings Limited (ASX: HVN) share price is lifting 1.81%, while Breville Group Ltd (ASX: BRG) is rising 0.66%. Meanwhile, Lovisa Holdings Ltd (ASX: LOV) shares are jumping 0.86% and Super Retail Group Ltd (ASX: SUL) is rising 1.39%. The JB Hi-Fi Limited (ASX: JBH) share price is 0.07% in the red today. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is rising 0.7%.
Let's take a look at what could be impacting these ASX 200 consumer shares.
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What's happening?
The latest ANZ-Roy Morgan Consumer Confidence data shows that confidence fell 0.5% to 85.7 in the past week. Confidence in Victoria and South Australia improved, while it fell in NSW, Queensland and Western Australia.
However, ANZ Economics head David Plank noted the drop was "a relatively small decline" given the RBA raised interest rates by 50 basis points. He added:
This is the smallest decline after a 50bp increase this year. The previous three 50bp increases in June, July and August saw an average decline in confidence of about 5%.
It is possible that Lowe's suggestion that the size of future rate increases might be smaller helped support confidence somewhat.
Meanwhile, NAB has also released its monthly business survey for August today. Business confidence lifted 3 points while business conditions lifted 1 point. NAB noted with demand strong, companies are continuing to pass on costs to consumers.
NAB group chief economist Alan Oster said the "recent strength in business conditions" carried into August. He added:
Official data for retail sales in July confirmed spending remained robust, as suggested by the previous survey, and today's release shows little sign that August was much different.
Conditions are strong across most industries other than construction, where profitability remains a challenge.
Finally, the Westpac Melbourne Institute Index of Consumer Sentiment lifted by 3.9% in September to 84.4. This was the first rise in the index since November last year.
However, Westpac chief economist Bill Evans noted consumer sentiment "remains near historic lows". He said:
The improvement is a little surprising, especially given continued sharp rises in the cost of living and the RBA's decision during the survey week to make another 50bp increase in the official cash rate.
Consumers may be a little less fearful, but confidence remains very weak. Index reads in the 80-85 range mean pessimists still greatly outnumber optimists.
