Consumer confidence fell a touch more

Consumer confidence fell a further 0.6 per cent, as the lockdown in Melbourne was extended for another week after a rise in the number of COVID-19 cases. The confidence subindices registered mixed results.

‘Current financial conditions’ fell 1.5 per cent, while ‘future financial conditions’ improved by 2.0 per cent.

‘Current economic conditions’ declined 3.1 per cent, while ‘future economic conditions’ gained 1.5 per cent.

‘Time to buy a major household item’ weakened 2.2 per cent. ‘Weekly inflation expectations’ increased by 0.1ppt to 4.0 per cent, keeping the four-week moving average at 3.8 per cent. This is the highest weekly result for inflation expectations since March 2020.

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"Consumer confidence fell another 0.6 per cent as the lockdown in Melbourne was extended until at least 10 June." ANZ Head of Australian Economics, David Plank said.

"Confidence fell by 2.4 per cent in Melbourne and by 0.6 per cent in Brisbane, but it was up 4.3 per cent in Sydney.The emergence of a more infectious strain of COVID is raising concerns that the lockdown could be extended again. This could have a more lasting impact on confidence than we have seen with recent snap lockdowns. Still, the fact that consumers became more confident about future financial and economic conditions suggests even a longer shutdown may not have a permanently dampening effect on overall sentiment." 

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