Consumer confidence rose 1.0 per cent last week, its fifth straight week of small but consistent gains. Anticipation of yesterday’s reopening of greater Sydney, after over 100 days of strict restrictions, likely added to last weekend’s positive outlook.
The subindices registered mixed results. ‘Current financial conditions’ dropped 1.5 per cent, while ‘future financial conditions’ gained 0.3 per cent.
‘Current economic conditions’ rose 4.2 per cent, but ‘future economic conditions’ softened 0.5 per cent.
‘Time to buy a major household item’ improved 2.6 per cent. ‘Weekly inflation expectations’ dropped 0.1ppt but remained elevated at 4.7 per cent. The four-week moving average rose 0.1ppt to 4.8 per cent.
“Consumer confidence increased by 1.0 per cent nationally as Sydney was poised to come out of its long lockdown.” ANZ Head of Australian Economics, David Plank said.
“Confidence in the city rose by 2.5 per cent, along with gains in Brisbane (14.4 per cent) and Perth (3.1 per cent). This rise was partially offset by a drop in confidence in Adelaide (-3.4 per cent) and Melbourne (-3.6 per cent).”
“The dampened outlook in Melbourne may reflect rapidly rising COVID case numbers in the city. Given that more than 84 per cent of the adult population in Victoria has been vaccinated at least once, the daily cases should peak soon, which should provide a boost to Melbourne ahead of its reopening.”
“Sentiment in Sydney and NSW could also rise on a successful reopening, though we do note that confidence in Sydney is already a touch above its average for 2021.”
