As the variant continues to recede across Australia, consumer confidence has risen more than three points, now sitting above the weekly average for 2021.
After a series of ordinary weeks for many Australians, consumer confidence has increased to 103.2. The 3.3pts increase for the second week of February places it above the 2021 weekly average of 101.5.
Despite this positive news, it remains well below the long-run average.
There were increases across the country – the most significant lifts came from Queensland, NSW, WA and Tasmania. These were driven primarily by an increase in personal finances compared to a year ago.
“Consumer confidence increased 3.3 percent last week, despite retail petrol prices reaching record highs,” said David Plank, ANZ Head of Australian Economics. “Although confidence rose above the neutral level of 100, it is still well below its long-run average, so we can’t say higher inflation isn’t having an impact.”
For consumers planning to buy a major household item, there has been a slight decrease (1ppt) – currently, 33 percent of Australians say that now is a good time to buy. In contrast, 32 percent say that now is a bad time to buy a major household item – this figure also dropped 1ppt in the last week.
“The passing of the Omicron peak along with the news that international borders will reopen to vaccinated tourists later this month no doubt helped lift sentiment despite rising petrol prices. Confidence increased in every state, with gains of 4.1 percent in NSW, 1.1 percent in Victoria, 6.5 percent in Queensland, 1.2 percent in SA and 5.3 percent in WA,” said Plank.
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