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Bouncing Back: Consumer Confidence Stabilises

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By Published On: August 18, 20210 Comments

Consumer confidence has stabilised to 101.1, increasing by 2.5 pts, as South East Queensland emerges from its lockdown measures.

Currently, these figures are ‘well below’ the 2021 weekly average of 109.6, however, it remains 12.5 points higher than the same period last year.

Last week, Roy Morgan data showed that Australian consumer confidence had dipped below 100 for the first time since November, signalling a troubling sign for businesses and consumers alike.

However, as South East Queensland emerges from its lockdown measures, the state helped drive a 7.5 percent increase in its confidence. This was offset by states like Victoria and New South Wales, which had their lockdowns extended and the entire state put into lockdown, respectively.

“Consumer confidence rose 2.5 percent last week, rising back above the neutral level of 100. This recovery was driven by a 7.5 percent increase in confidence in Queensland as the lockdown in its south-east ended,” shared David Plank, the ANZ Head of Australians Economics.

There was an increase in the number of Australians who believe that now is a good time to buy a major household item, increasing by two ppts to 34 percent. Currently, 33 percent of Australians say that now is a bad time to buy a major household item, down three ppts.

Unsurprisingly, NSW has the lowest figure in consumer confidence this week and is currently the only state to have a figure below 100 points. Coming in second is Victoria, which has had its lockdown measures increased by a further two weeks, and reinstated the 9 pm curfew.

“Sentiment also rose by 7.1 percent in Sydney, reflecting resilience even as daily COVID-19 cases are still rising in the city,” Plank explained. “Despite the current resilience in sentiment, the persistence of the highly infectious Delta variant means there is significant uncertainty about how things will evolve over the next few weeks. The jump in weekly inflation expectations is notable and something that may trouble policymakers if it continues to rise sharply.”

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