Apr 13, 2021
Consumer confidence softens
Consumer confidence fell 1.4 per cent amidst fears of another COVID outbreak. Despite the fall, confidence remained above the 2021 weekly average and close to the long-run average.
Three out of the five subindices registered a loss. Against the overall trend, ‘current financial conditions’ gained 0.5 per cent, while ‘future financial conditions’ fell 2 per cent.
‘Current economic conditions’ weakened 2.1 per cent and ‘future economic conditions’ declined 4.1 per cent.
‘Time to buy a major household item’ rose 0.9 per cent. ‘Weekly inflation expectations’ remained steady at 3.7 per cent, keeping the four-week moving average unchanged at 3.8 per cent.
"The three-day lockdown of the Perth and Peel region following the emergence of new COVID-19 infections led to a fall of 1.4 per cent in consumer confidence," ANZ Head of Australian Economics, David Plank, said.
"Not surprisingly, sentiment in Perth fell the most (-8.2 per cent), but Brisbane (-4.9 per cent), Sydney (-3.6 per cent) and Melbourne (-4.4 per cent) were also impacted. Both the ‘current’ and ‘future economic conditions’ took a hit following a rise in the past two weeks."
"This fall is possibly due to the uncertainty surrounding the new strains of the virus. We know, however, from previous experience that a quick resolution of the lockdown will see sentiment (and spending) rebound very quickly."