Australian consumer confidence clouded by Covid-19 in January: survey

[SYDNEY] A measure of Australian consumer sentiment slipped from a decade high in January as new outbreaks of Covid-19 in Sydney and Brisbane spooked people, though the spread has now been contained with relatively few cases and no deaths.

The Westpac-Melbourne Institute index of consumer sentiment released on Wednesday fell 4.5 per cent in January, from December, when it rose 4.1 per cent.

The index is still 41 per cent above a nadir hit back in April when Covid-19 lockdowns were at their height, and 14.6 per cent up on January last year. At 107.0, the index implies optimists clearly outnumber pessimists.

"A pullback in the Index was to be expected," said Westpac's chief economist, Bill Evans.

"Since the last survey we have seen domestic border closures; the emergence of Covid clusters in some states; and the sharp upswing in Covid cases overseas, notably the US and the UK."

The survey measure of family finances compared with a year ago dropped 7 per cent, while that for finances over the next 12 months eased a minor 0.3 per cent.

The outlook for the economy over the next 12 months fell 8.3 per cent, and that for the next five years lost 4.5 per cent.

A measure of whether it was a good time to buy a major household item dipped 2.8 per cent.

REUTERS