Consumer confidence has strengthened for the fourth week running although the 1% gain was much smaller than over the prior three weeks. However, all sub-indices in the latest ANZ-Roy Morgan data that reflect consumer outlook on finances, economics and household purchases were mixed, consistent with this loss of momentum.
While confidence is showing signs of consolidation after the strong gains of the prior three weeks, it remains well below average along with all of the sub-components, according to ANZ head of Australian Economics, David Plank.
“We are at an important stage in Australia’s response to the pandemic, with a number of states relaxing some restrictions. If successful, that could set the stage for a further gain in consumer sentiment.
“Unfortunately confidence is likely to be challenged by the publication of some very negative economic data over the coming month, after a period in which the data has not caught up with the severity of the economic impact from the lockdowns,” Plank said.