Consumer confidence softens

Consumer confidence dropped 1.8 per cent last week as COVID caseloads remained elevated in NSW and Victoria. Daily cases are expected to peak in the coming weeks as vaccination rates are rising steadily across Australia.

Four out of the five subindices registered losses last week. 'Current financial conditions' fell 2.3 per cent, a second consecutive decline. 'Future financial conditions' dropped 4.0 per cent.

'Current economic conditions' softened 0.7 per cent, while 'future economic conditions' gained 1.9 per cent.

'Time to buy a major household item' worsened 3.2 per cent after rising for three straight weeks. 'Weekly inflation expectations' surged 0.3ppt to 4.7 per cent, its highest level since the Wentworth by-election in October 2018. Its four- week moving average increased 0.1ppt to 4.5 per cent.