Consumer confidence remained almost steady last week with a fall of only 0.2 per cent. The index likely did not fully capture the impact of all the various restrictions and lockdowns imposed across the states, as most of the survey was completed before the news was released.
'Current financial conditions' softened 1.3 per cent, while 'future financial conditions' gained 1.4 per cent.
'Current economic conditions' declined 3.4 per cent, while 'future economic conditions' lost 1.7 per cent.
'Time to buy a major household item' rose 3.5 per cent. 'Weekly inflation expectations' fell by 0.1ppt to 4.1 per cent, however the four-week moving average increased by 0.1ppt to 4.1 per cent.
"Headline consumer confidence barely moved last week, dropping only 0.2 per cent from the week before. With new COVID-19 cases rising quite rapidly in NSW over the week, confidence in Sydney fell 4.6 per cent, while in regional NSW it fell 6.6 per cent." ANZ Senior Economist, Felicity Emmett said.
"The impact of this was largely offset by ongoing recovery in confidence in Melbourne and further gains in confidence elsewhere."
"Recent experience suggests sentiment will respond to case numbers and lockdown measures in the coming weeks: if case numbers remain high, confidence is likely to deteriorate, but if they come back under control quickly and restrictions look likely to be short-lived sentiment is likely to rebound."
