Consumer confidence took another hit this week dropping 0.9%, taking it to an eight-week low. The ANZ-Roy Morgan consumer confidence data is now 25.5% lower than a year ago, as the COVID-19 numbers from Victoria worsened.
Also driving the fall were declines in confidence about the Australian economy into the future as well as a drop in household purchase intentions.
Although there was a marginal improvement in how people felt about their financial conditions, confidence in economic conditions continued to deteriorate, ANZ senior economist, Catherine Birch said.
“While the return to lockdown in Melbourne has so far been localised to 12 postcodes, the confidence effect is more pervasive,” Birch said. “The uncertainty also appears to be discouraging households from committing to large purchases, with intentions to buy falling heavily for a second week.”