Breaking News
Close
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Australia Consumer Sentiment Slips in January on Omicron Surge

Economic IndicatorsJan 19, 2022 01:10
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Bloomberg. Shoppers walk past stores on Degraves Street in Melbourne, Australia, on Sunday, Nov. 7, 2021. Australian retailers suffered their worst quarter of sales on record as coronavirus-induced lockdowns along the nations heavily populated east coast slashed spending, underscoring expectations the economy contracted in the period. Photographer: James Bugg/Bloomberg 2/2

(Bloomberg) -- Australian household sentiment dropped this month in response to a surge of coronavirus cases that exacerbated existing supply chain problems and prompted shoppers to turn more cautious.

The consumer confidence index fell 2% to 102.2 points in January, Westpac Banking (NYSE:WBK) Corp. said in a statement Wednesday. Optimists still outnumbered pessimists, with 100 points the dividing line between the two.

Westpac Chief Economist Bill Evans said the result was much better than the 17.7% collapse when the pandemic first hit in early 2020. Moreover, consumers in Australia’s two most populous states, which endured protracted lockdowns around mid-2021, seemed “less unsettled by the rapid spread of the omicron variant than those in states experiencing their first major wave of Covid infections,” he said.

The omicron outbreak is forcing supermarkets to impose purchase limits on products and  leaving firms struggling for staff as infected workers are forced to isolate. That’s likely to slow a recovery in the $1.5 trillion economy in the short-term at least, with a slew of growth forecast downgrades from economists. 

“The component detail shows increased concerns about the outlook for both the economy and family finances,” Evans said. “Consumers’ near-term expectations for the economy showed the biggest fall.” 

High frequency data from Australian banks have shown omicron variant kept shoppers at home during the Christmas holiday period.

Westpac’s survey showed consumers reported a significant improvement in their finances from a year ago, with the sub-index lifting 7.5% to a nine-month high of 95.6. That likely reflects a solid rebound in employment, wealth gains from a resurgent housing market and the accumulation of significant reserves due to high savings rates during lockdowns, according to the report.

©2022 Bloomberg L.P.

Australia Consumer Sentiment Slips in January on Omicron Surge
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
DOWNLOAD APPApp store
Investing.com
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
or
Sign up with Email