Consumer confidence continues to rise
Although the consumer confidence index remains below its weekly average, it is rising consistently, up for the fifth straight week.
The ANZ-Roy Morgan Consumer Confidence was up by one point to 105.6 in mid-October and is 7.9 points higher than it was at the same time last year.
In Sydney, where lockdowns have ended, consumer confidence was up, as it was in Brisbane and Adelaide, however it was down in Melbourne as the lockdown is set to continue for another two weeks.
Confidence in the Australian economy was the driving factor in this week’s small rise with more Australians saying now is a “good time to buy” major household items.
The report states that 27 per cent of Australian families are “better off” financially than the same time last year, which was down two points, while 26 per cent thought they were “worse off”.
Around 36 per cent of Australians expect their family to be better off financially compared to the same time in 2020, compared to 14 per cent who think they will be worse off.
An increasing proportion of 17 per cent (up from 16 per cent) of Australians expects “good times” for the Australian economy over the next 12 months while 23 per cent (down from 25 per cent), expect “bad times”.
In the longer-term, a fifth of Australians, are expecting “good times” for the economy over the next five years compared to 16 per cent expecting “bad times”.
Buying intentions improved this week with 37 per cent of Australians, saying now is a “good time to buy” major household items while 30 per cent say now is a “bad time to buy”.
“Consumer confidence increased by 1 per cent nationally as Sydney was poised to come out of its long lockdown. Confidence in the city rose by 2.5 per cent, along with gains in Brisbane (14.4 per cent) and Perth (3.1 per cent),” ANZ head of Australian economics, David Plank, said.
“This rise was partially offset by a drop in confidence in Adelaide and Melbourne. The dampened outlook in Melbourne may reflect rapidly rising COVID case numbers in the city.
“Given that more than 84 per cent of the adult population in Victoria has been vaccinated at least once, the daily cases should peak soon, which should provide a boost to Melbourne ahead of its reopening. Sentiment in Sydney and NSW could also rise on a successful reopening, though we do note that confidence in Sydney is already a touch above its average for 2021.”