Consumer confidence decreased by 1.3 per cent last week. News of the Omicron coronavirus strain likely contributed to the weakness. Among the major states, confidence rose in New South Wales and South Australia, while it dropped in Victoria, Queensland and Western Australia.
‘Weekly inflation expectations’ increased 0.2ppt to 4.8 per cent but the four-week moving average dropped 0.1ppt to 4.8 per cent.
Four of the five subindices decreased. ‘Current financial conditions’ dropped 3.8 per cent and ‘future financial conditions’ were down 0.9 per cent.
‘Current economic conditions’ softened 0.6 per cent, while ‘future economic conditions’ declined 5.9 per cent – its biggest drop since April 2020.
‘Time to buy a major household item’ jumped 4.6 per cent.