The ANZ-Roy Morgan Consumer Confidence Index dropped 4.6%, its lowest level for over a month and 25.9% lower than a year ago.
There were small declines across all market indicators but driving the fall was a decline in confidence about the Australian economy over the next five years. Household buying intentions also deteriorated slightly, down 2%.
According to ANZ senior economist, Catherine Birch, the surge in COVID-19 cases in Victoria has dented consumer confidence, and was the largest fall since late-March when new daily cases peaked nationally.
“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,” she said.
“Confidence around financial conditions fell too and we are already seeing Victorians pull back on spending in the latest ANZ data. Unfortunately, new daily cases in Victoria jumped to 75 on Monday, the state’s fourth-highest daily total since the pandemic began, which is a worrying sign for confidence and a setback for the recovery.”