Daily Commentary BY THE CURVE TEAM –

Daily Insights – Consumer Confidence Dips

12th of August, 2021

Consumer confidence

  • Fell 4.4% in August but remains in optimistic territory at 104.1.
  • The unemployment index rose 13.3% and Economic conditions for the next 12 months fell 8.3%.
  • Those that are vaccinated or plan to be (76% of those surveyed) are 10 points more optimistic than those that are undecided or will not get vaccinated.
  • The survey period included the Victorian and Queensland snap lockdowns.
  • States under lockdown had falls in confidence, with Victoria leading the falls with a 10.8% decline.
  • WA and SA had strong rises in confidence as the covid threat diminished over the short term. 

US Inflation

  • July headline inflation was 0.5%.
  • Core inflation was 0.3%, slightly under the expected 0.4%.
  • Yields on the US fell slightly as a result.
  • Like the RBA, the Fed believe inflation will be transient. But talk of tapering policy is still prominent.

Josh Stewart

Associate - Money Markets