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Consumer Confidence on Road to Recovery, Report Finds
Following a quarantine breach in Melbourne last week, consumer confidence has slipped 0.7 pts to 111.4, but is on the road to recovery, according to a report from Roy Morgan.
The report found that the decrease in consumer confidence is driven by ‘small falls in confidence’ regarding personal finances.
As such, fewer Australians say they are ‘better off’ financially than they were a year ago (26 percent), with fewer also expecting to be ‘better off’ financially this time next year (13 percent).
In contrast, 40 percent of Australian say that their families will be better off financially this time next year.
“Consumer confidence is consolidating close to its long-run average,” said David Plank, the ANZ Head of Australian Economics. “This solidifies the recovery from 2020. Any meaningful breakout from here on will have to be on back of strong news/developments.”
According to the Roy Morgan report, 43 percent of Australians say that now is a ‘good time’ to buy a major household item, up one ppt. Conversely, 26 percent say that now is a ‘bad time’ to buy a household item, which is also up one ppt.
“The vaccine rollout in Australia could be the next big trigger, with a successful program possibly propelling sentiment much higher. Of course, difficulties in providing vaccine coverage could have the opposite effect,” Plank said.