The latest ANZ-Roy Morgan Consumer Confidence revealed that last month, there was an increase of 0.9 points to 100.1 during the first week of March, but this figure is still significantly below (11.8 pts) the same week a year ago, and is now just below the 2022 weekly average of 101.1.
The index has been unable to establish a consistent pattern this year with four weekly increases and four weekly decreases so far caused by the uncertainties of work due to the omicron strain, flooding in many parts of Queensland and NSW and also rising geopolitical tensions in Europe that have spurred worries about inflation.
There were no consistent trends in the states this week with consumer confidence up slightly in Sydney, Queensland (as floods receded) and South Australia but down in country NSW (which was hit by floods), Victoria and Western Australia as restrictions were introduced in Perth to fight COVID-19.
Australians who thought they were better off financially than the same time last year dropped slightly while those who thought they would be better off in 12 months also took a hit.
However, just 13 per cent (down 1 ppt), of Australians expect “good times” for the Australian economy over the next 12 months compared to 27 per cent (up 2 ppts), who expect “bad times”.
In the longer term, 17 per cent (up 2 ppts), of Australians are expecting “good times” for the economy over the next five years compared to 18 per cent (unchanged) expecting “bad times”.
ANZ head of Australian economics, David Plank, said consumer confidence increased by 0.9 per cent last week as the floods in southern Queensland and northern NSW receded, if only momentarily.
“This took it just above the neutral level but left it well below average. Confidence rose slightly in NSW by 0.6 per cent and was up a sharp 7.2 per cent in Queensland,” he said.
“The surge in Omicron cases in WA weighed confidence down 2.6 per cent. Among the other states, confidence fell in Victoria (-2.6 per cent), while it rose in SA (9.4 per cent). Nationally, confidence has been hovering around the neutral level of 100 during the past seven weeks, not heading in the same direction for more than two weeks. Household inflation expectations fell by 0.1ppt but remained elevated at 5.2 per cent as petrol prices reach a new high.”
