Consumer confidence is continuing its downward slide, as Melbourne COVID-19 cases surge. However, on the good news front an increasing number of Australians think now is a good time to buy a major household item.
According to the latest ANZ Roy Morgan data the Victorian capital is now well below the national average as it battles a renewed outbreak of COVID-19. Consumer confidence in Adelaide and Sydney was also down, although both are slightly above the national figure. Perth is the most confident city in Australia with consumer confidence surging 7.3% as the city welcomed the AFL and football crowds back.
ANZ head of Australian Economics, David Plank said confidence continues to decline as the situation in Melbourne worsens and the number of cases in Sydney rises. However, the drop in sentiment is nowhere near as severe as the fall seen in mid-March.
“The resilience shown by the ‘current finances’ sub-index, which has actually risen a touch since the end of May as overall sentiment has fallen by almost 8%, is also encouraging,” he said.
Australia’s success in combating the first surge in the pandemic, as well as the expectation that the government stands ready to extend support if required, is underpinning this resilience, Plank said.