Consumer confidence has taken a downward turn, hitting levels below 100 for the first time since November last year.
Now sitting at 98.6, it is well below the weekly 2021 weekly average of 109.9 but remains 12.1 points higher than the same period last year (86.5).
The catalyst for this dip in consumer confidence comes as no surprise, with ongoing lockdown in Sydney, extended measures in Melbourne and snap stay at home orders for South East Queensland.
“As a result, confidence dropped by 7.5 percent in Brisbane and 1.6 percent in Melbourne,” explained David Plank, the ANZ Head of Australian Economics. “Sydney and the rest of NSW, on the other hand, saw an increase in confidence of 3.7 percent and 2.1 percent respectively as the vaccination rate picked up and some restrictions on construction work were eased.”
Across the board, 32 percent of Australians say that now is a good time to buy a major household item. This figure is down four ppts, and is at its lowest point since August 2020. In contrast, 36 percent say that now is a bad time to buy a major household item, up four ppts.
“Sentiment is still above the level reached during Victoria’s long second lockdown, but it is now in pessimistic territory for the first time since early November last year. Our research suggests we can’t be sure the low in confidence in the current cycle has been reached until COVID case numbers start to trend lower,” Plank explained.
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