Consumer confidence is steady

Consumer confidence changed little last week, up 0.2 per cent despite higher COVID-19 case numbers in NSW and Victoria. The increasing vaccination rate may be raising hope that despite prolonged lockdowns, things will get better.

The subindices registered mixed results: ‘Current financial conditions’ declined 3.2 per cent, while ‘Future financial conditions’ gained 1.3 per cent.

‘Current economic conditions’ improved 6.0 per cent after falling significantly last week as those expecting ‘bad times’ for the economy over the next year declined. ‘Future economic conditions’ worsened 1.9 per cent.

‘Time to buy a major household item’ barely moved, up just 0.2 per cent. ‘Weekly inflation expectations’ and its four-week moving average hovered at 4.4 per cent.

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"Consumer confidence rose 0.2 per cent last week despite rising COVID case numbers." ANZ Head of Australian Economics, David Plank said.

"Sentiment in Sydney gained 0.9 per cent, as daily case numbers rose above 1,000 for the first time. Confidence fell in Brisbane (-1.6 per cent), Melbourne (-1.9 per cent), Adelaide (-8.6 per cent) and Perth (-0.8 per cent)."

"The overall steady outlook may reflect the increasing vaccination rates across the country and the hope that this will eventually bring lockdowns and border closures to an end."

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