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Australia's consumer confidence dropped 3.5% last week, as Sydney, Victoria and South Australia remained under a lockdown says ANZ Roy Morgan. Sentiment around current economic conditions dropped 6%.

ANZ Consumer Confidence 7 26 2021 

 Australian Weekly ANZ Roy Morgan Consumer Confidence July 27 2021

  • Australian Consumer Confidence -3.5% on Lockdowns -- ANZ Roy Morgan
  • Australian Consumer Confidence Lowest Since November 2020 -- ANZ Roy Morgan
  • All the subindices of the survey registered a fall, with the ones that capture current conditions falling furthest.
  • Most notably, sentiment around current economic conditions dropped 6%.
  • ‘Time to buy a major household item’ dropped 6.6%to its lowest level since mid-October 2020.
  • ‘Weekly inflation expectations’over the next two years increased by 0.1 ppt to 4.3%, its highest level since late March 2020, with the four-week moving average steady at 4.1%.
  • Confidence fell by 2.2 per cent in Sydney last week, declines were much greater in lockdown-weary Melbourne (-6.4 per cent) and Perth (-4.6 per cent).

Australian consumer confidence dropped 3.5% last week, as Sydney, Victoria and South Australia remained under a lockdown, with cases rising in Sydney despite the tightened restrictions, says ANZ Roy Morgan. Consumer confidence, as measured by ANZ and Roy Morgan, has plunged 10.4 per cent since Sydney’s first positive community case of the Covid-19 delta variant on June 16, 2021. In fact, sentiment is now at the lowest level since the gauge briefly dipped below the 100 mark – which separates optimists from pessimists – on November 1, 2020.

ANZ Head of Australian Economics, David Plank, commented:

"Consumer confidence fell by 3.5% last week, to its lowest since early November 2020 right after Victoria’s long second lockdown. Confidence fell in both Sydney (-2.2%) and Melbourne (-6.4%), but rose in Adelaide a touch (0.5%). Even with a much higher case load and longer lockdown, confidence in Sydney is a bit higher than in Melbourne. We would note that even during Melbourne’s long lockdown in 2020 confidence levels in the two cities remained close. Sentiment declined in Brisbane (-6.1%) and Perth (-4.6%) despite the absence of lockdowns in those cities, further highlighting the interrelated nature of sentiment across Australia. Confidence remains well above the lows seen in the early stages of the pandemic, suggesting the economic hit from the current lockdowns will be less than that seen in the second quarter of 2020."

Commonwealth Bank (CBA) Group economists also released credit and debit card spending data today.

  • Nationally, CBA card spending is up just 2.4 per cent for the week ending 23 July 2021 when compared to 2019 levels.
  • But spending in NSW fell by 2.7 per cent with NSW metro spending down 9.6 per cent for the week ending 23 July 2021 when compared to 2019 levels.
  • In Victoria, CBA card spending was down 7.0 per cent when compared to 2019 for the week ending 23 July 202

Source: Roy Morgan

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