Consumer confidence pulls back

Consumer confidence pulled back after a record run of 11 straight weeks of gains. The headline index was down by 2 per cent, with most subindices falling as the lockdown of South Australia reminded consumers that COVID-19 is an ongoing risk.

‘Current financial conditions’ declined by 4.5 per cent. ‘Future financial conditions’ was unchanged from the previous week. ‘Current economic conditions’ declined by 3.2 per cent, while ‘future economic conditions’ dropped by 1.1 per cent.

‘Time to buy a major household item’ fell by 1.6 per cent, its second week of weakness. The four-week moving average of ‘inflation expectations’ inched up to 3.5 per cent.

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"Consumer confidence broke its record 11 week winning streak and slipped 2 per cent as South Australia went into a short and sharp lockdown," ANZ Head of Australian Economics David Plank said.

"The nationwide index remains above the neutral level, but South Australia’s index dropped below the 100 level. New South Wales and Queensland gave up some recent gains, while Victoria saw a very modest decline."

"With South Australia reopening earlier than expected and restrictions in Victoria and New South Wales relaxed the impact on sentiment may be short lived."

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