PM change should aid confidence: economist

Economists are expecting consumer and business confidence to lift after the change of prime minister.

Consumer confidence is likely to have benefited from a change of prime minister - a bonus for retailers from the political upheaval of the past week.

The ANZ-Roy Morgan weekly confidence gauge will be released on Tuesday, the first to reflect the response to the toppling of Tony Abbott by Malcolm Turnbull.

JP Morgan chief economist Stephen Walters believes the positive response to the leadership in the first opinion polls should also be reflected in consumer and business sentiment in the near term.

"But lasting impacts on the economy will depend on how long confidence remains high," he says.

Mr Turnbull has put the economy at the centre of his prime ministership, appointing a new treasurer in Scott Morrison and promoting Kelly O'Dwyer to assistant treasurer.

Last week's confidence reading was quite telling for the leadership of Mr Abbott and his treasurer Joe Hockey.

Confidence dropped to its lowest level in over a year, with expectations about the economic outlook showing Australians as being more pessimistic than at the depths of the 2008-2009 global financial crisis.


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Source: AAP


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