Treasurer Josh Frydenberg is confident Australia’s economy will rebound strongly from its virus lockdown setbacks by the end of this year and through 2022.

His optimism was supported by the sixth consecutive weekly rise in consumer confidence in data released Tuesday and by last week’s report showing a sharp increase in business sentiment.

“We are quite optimistic and confident of a very strong rebound in the December quarter and then into 2022,” Frydenberg said at an Australian Chamber of Commerce and Industry online conference.

“So as we see a contraction in the September quarter, with the restrictions easing, we will see a strong rebound.”

The ANZ-Roy Morgan consumer confidence index – an indicator of future household spending – rose 1.3% last week, supported by the reopening of Greater Sydney and the impending easing of restrictions in Melbourne.

Confidence has risen seven percent since early September and is at its highest level since early July.

Confidence jumped 5.4% in Melbourne, which is expected to start easing restrictions on Friday and earlier than expected.

Mr Frydenberg said Queensland’s plan to open the borders in December was important.

“It will give confidence to these tourism businesses and it will give confidence to customers from southern states who usually head north for summer vacation,” said the treasurer.

The minutes of the Reserve Bank of Australia’s October 5 board meeting, released on Tuesday, also showed timely indicators of household spending and hiring intentions suggesting that the recovery in activity would be well underway by the end of the year.

Its central scenario is for the economy to return to its pre-delta trajectory by the second half of 2022.

“Nonetheless, members recognized that the recovery would likely be uneven across the economy and that uncertainty would be a feature of the outlook for some time to come,” the minutes said.

Shadow Treasurer Jim Chalmers agrees the recovery is likely to be uneven, saying at the ACCI conference, parts of the economy will be held back by supply chain pressures and skills shortages.

“That’s why we want to see continued economic support that is tailored to the economy as it is, rather than the economy we want it to be,” said Dr Chalmers.

The RBA minutes stuck to the script that the central bank will not increase the cash rate until inflation is sustainably within its 2-3% target, a condition it expected. not to happen before 2024.

Associated Australian Press