Daily Commentary BY THE CURVE TEAM –

Lockdown Hits Confidence

10th of June, 2021

Consumer confidence for June recorded another dip, but the components of the falls were surprising.

The lockdown in Victoria very likely contributed to a fall in consumer confidence. It fell 5.2% to 107.2 which is coming off highs of nearly 120.

Interestingly, Victoria did not lead the declines. They were down 7.5%, whereas South Australia and Western Australia had larger declines.

It leaves NSW as the clear leader among the states in terms of confidence and by a considerable margin. NSW are over 10% higher than Victoria, Queensland and South Australia, as well as nearly 20% higher than Western Australia and nearly 30% higher than Tasmania.

This is likely indicative of NSW’s ability to contain the virus. Especially after a covid scare over December and January that has since been contained.

For the overall index economic conditions and family finances were down around 10%. Also, the unemployment index rose 8%, which is in contrast to the strong business survey data released on Tuesday.

Josh Stewart

Associate - Money Markets