Consumer confidence kicks off 2021 flat

Consumer confidence details were mixed in the first survey of 2021, with two the of five subindices up and three down, with the overall index 0.1 per cent weaker than the last survey of 2020 (the weekend prior to Christmas).

‘Current financial conditions’ rose 2.1 per cent, while ‘future financial conditions’ worsened 1.9 per cent. ‘Current economic conditions’ deteriorated by 2.3 per cent, while ‘future economic conditions’ declined by 1.4 per cent.

‘Time to buy a major household item’ was up 3.3 per cent. The four-week moving average of ‘inflation expectations’ was unchanged at 3.7 per cent.

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"For the third year in a row, consumer confidence has begun the year on a flat/downbeat note compared to the pre-Christmas level," ANZ Head of Australian Economics David Plank said.

"Given the Brisbane lockdown and the widespread border closures, the effectively flat result for confidence might be seen as a reasonably good outcome. But confidence usually rises over the holiday period. Between 2009 and 2018, consumer confidence rose 3.3 per cent on average between the last survey of December and the first of January."

"In this context, the result for this survey should be viewed as soft. Interestingly, notwithstanding the short lockdown, confidence in Brisbane and rest of Queensland was up on the pre-Christmas week. On the other hand, confidence in New South Wales and Victoria declined, as borders closed."

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