Consumer confidence dropped 5.2 per cent last week, its sharpest weekly fall since late March 2020. The fall follows the extension and tightening of the Sydney lockdown and the fifth lockdown in Melbourne. While the decline was sharp, confidence is still well above the levels seen through the first phase of the pandemic in 2020.
Four out of five of the subindices fell significantly. ‘Current financial conditions’ was the only component to register a gain of 1.2 per cent, while ‘future financial conditions’ lost 3.4 per cent.
‘Current economic conditions’ dropped 7.9 per cent, while ‘future economic conditions’ decreased by 4.5 per cent.
‘Time to buy a major household item’ plunged 10.5 per cent. ‘Weekly inflation expectations’ increased by 0.1ppt to 4.2 per cent, keeping the four-week moving average steady at 4.1 per cent.