Consumer Confidence Falls 4.6%, As Melbourne’s COVID-19 Cases Surge

The ANZ-Roy Morgan Australian Consumer Confidence index fell by 4.6% last week, as the number of COVID-19 cases in Melbourne began to pick up again. It is now sitting at its lowest level in over a month – it is also 25.9 points lower than this time a year ago.

“Unfortunately, new daily cases in Victoria jumped to 75 on Monday, the state’s fourth-highest daily total since the pandemic began. This is a worrying sign for confidence and a setback for the for the recovery,” said Catherine Birch, ANZ Senior Economist. “This was the largest fall since late March, when national new daily cases peaked.”

The ‘time to buy a household item’ category contracted by 4.9%, more than revising last week’s gain. Now, 36% of Australians say it is a good time to buy a major household item, compared to 34% who say it is a bad time to.

“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,” said Birch.