ANZ Senior Economist, Catherine Birch, commented:
"The surge in COVID-19 cases in Victoria has dented consumer confidence, which dropped 4.6% last week. This was the largest fall since late-March, when national new daily cases peaked. Confidence in ‘current economic conditions’ fell sharply, suggesting that households are worried about the prospect of a return to tighter lockdowns and the impact of a second wave on the economy.
Confidence around ‘financial conditions’ fell too and we are already seeing Victorians pull back on spending in the latest ANZ data. Unfortunately, new daily cases in Victoria jumped to 75 on Monday, the state’s fourth-highest daily total since the pandemic began. This a worrying sign for confidence and a setback for the recovery."