Consumer confidence inches eases

Confidence declined 1.0 per cent last week, mainly due to the COVID case registered in Sydney that was followed by precautionary restrictions in the area to prevent an outbreak.

‘Current financial conditions’ declined 2.2 per cent, while ‘future financial conditions’ weakened 1.4 per cent.

‘Current economic conditions’ gained 2.8 per cent with expectations of ‘bad times’ falling to a record low stretching back over forty years. ‘Future economic conditions’ improved by 1.8 per cent.

‘Time to buy a major household item’ fell, for the first time in five weeks, by 4.7 per cent. ‘Weekly inflation expectations’ rose 0.2ppt to 3.9 per cent, however, the four-week moving average remained unchanged at 3.8 per cent.

“The most notable thing from the latest survey is that the proportion of respondents expecting ‘bad times’ in ‘current economic conditions’ dropped to just 12 per cent, its lowest level in over forty years.” ANZ Head of Australian Economics, David Plank said.

“This sharp improvement came about despite the 1 per cent fall in overall consumer confidence and points to positive sentiment about the near-term outlook being very widespread.”

“The fall in overall confidence was not surprising given that Sydney recorded a mysterious case of COVID-19, and restrictions were imposed to prevent any further spread. As a result, confidence in Sydney took a hit of 7.6 per cent.”

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