Consumer confidence has increased for a month and a half, with continuous growth with lockdown expected to end in Melbourne.
For six weeks in a row, consumer confidence has increased, now reaching 107.0. This is an incremental lift of 1.3pts but remains below the 2021 weekly average of 108.3.
Consumer confidence saw a similar pattern in the same period last year, where it increased six weeks in a row. Despite the current figures reporting below average, it’s is well above the same point last year, when it was 98.1.
The removal of certain restrictions across Sydney has played a monumental role in this figure. Furthermore, the news of Melbourne leaving lockdown has also sparked an increase in confidence, as David Plank, ANZ Head of Australian Economics said.
“Consumer confidence rose 1.3 percent nationally as greater Sydney reopened last week after more than three months in lockdown,” he said.
According to the report from Roy Morgan, an unchanged 37 percent of Australians are saying that now is a good time to buy a major household item. In contrast, 30 percent say that now is a bad time to buy – a figure that is also unchanged since the last reporting.
“The rise in confidence in the city over the past two weeks has been quite modest at 3.5 percent. This compares with the 9.2 percent rise over the first two weeks of reopening last year in May 2020,” he said. “The difference reflects the level of confidence. Sentiment in Sydney is already above its 2021 average, while in May last year the lockdown ended with sentiment still at very depressed levels.”
Confidence has increased by 5.4 percent in Melbourne as it edges closer to lifted lockdown measures, which are ending earlier than expected.
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