Consumer confidence rose 0.9 per cent last week, the fourth consecutive week of small gains. Confidence increased in Sydney, Melbourne and regional South Australia, while it fell in Adelaide, Brisbane and Perth.
Three of the five confidence subindices improved. ‘Current financial conditions’ gained 2.2 per cent, while ‘future financial conditions’ softened 0.3 per cent.
‘Current economic conditions’ rose 2.1 per cent and ‘future economic conditions’ were up 4.2 per cent.
‘Time to buy a major household item’ declined 3.2 per cent. ‘Weekly inflation expectations’ remained at the pandemic-high of 4.8 per cent. The four-week moving average was also steady at 4.7 per cent.
“Consumer confidence increased by 0.9 per cent last week as NSW recorded a substantial drop in new COVID cases. People are optimistic but sentiment is still some way below its long-run average.” ANZ Head of Australian Economics, David Plank said.
“With Sydney and Melbourne headed towards re-opening in the next few weeks, confidence increased in both cities by 4.4 per cent and 1.5 per cent respectively.”
“The rise in Melbourne was dampened by a fall in regional Victoria of -4.1 per cent. Confidence also declined in Adelaide (-2.1 per cent), Brisbane (-9.0 per cent) and Perth (-6.2 per cent). Inflation expectations remained elevated at its recent pandemic-high.”
