Consumer confidence gained 1.1 per cent last week as the lockdowns in Victoria and South Australia ended. Confidence dropped in Sydney with the extension of lockdown in the city, but this was not enough to offset gains elsewhere
All but one of the subindices registered a gain. ‘Current financial conditions’ rose 1.0 per cent, while ‘future financial conditions’ increased by 2.3 per cent.
‘Current economic conditions’ lost 4.7 per cent, while ‘future economic conditions’ gained 0.5 per cent.
‘Time to buy a major household item’ improved by 5.3 per cent. ‘Weekly inflation expectations’ fell by 0.1ppt to 4.2 per cent, though the four-week moving average rose 0.1ppt to 4.2 per cent.
“Consumer confidence rose by 1.1 per cent last week as restrictions were lifted from Victoria and South Australia. Confidence in their capital cities improved by 2.0 per cent and 2.9 per cent respectively.” ANZ Head of Australian Economics, David Plank said.
“Sentiment in Brisbane was also up by 2.7 per cent, but the majority of the survey was completed before the three-day lockdown in South East Queensland was announced.”
“Sentiment in Sydney was down a sharp 7.0 per cent as the lockdown in the city was extended by a month. While below the long-run average, overall consumer confidence is well above the levels seen during Melbourne’s long second lockdown. This is consistent with the evidence provided by ANZ Job Ads that the economic impact of the current lockdowns is likely to be considerably less than in 2020.”
