Consumer confidence upticks

There was a slight increase in consumer confidence of 0.3 per cent last week, as the two-week lockdown in Melbourne ended, although with some restrictions remaining. Among the confidence subindices, both current and future financial conditions declined, while the rest increased.

‘Current financial conditions’ fell 4.3 per cent, while ‘future financial conditions’ softened

1.5 per cent.

‘Current economic conditions’ gained 1.4 per cent, while ‘future economic conditions’ rose

2.3 per cent.

‘Time to buy a major household item’ improved by 3.3 per cent. ‘Weekly inflation expectations’ fell by 0.1ppt to 3.9 per cent, with the four-week moving average up 0.1ppt to 3.9 per cent.

“Consumer confidence increased 0.3 per cent last week as the two-week lockdown in Melbourne came to an end, although restrictions such as mandatory wearing of masks in public places and other travel and gathering restrictions remained.” ANZ Head of Australian Economics, David Plank said.

“This probably explains why confidence in Melbourne fell a further 0.9 per cent, while it rose by 4.8 per cent in regional Victoria.”

“We see the rapid recovery in confidence in regional Victoria as evidence that consumer sentiment remains resilient in the face of temporary lock-downs and so don’t expect the more prolonged period of restrictions in Melbourne to have a long-term scarring effect.”

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