Business

Consumer confidence falls as Covid-19 restrictions continue

12:38 pm on 29 October 2021

Consumer confidence continues to fall with expectations down sharply as the Covid lockdowns continue.

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The ANZ-Roy Morgan Consumer Confidence survey has dropped 7 points from September to 98 points. A score below 100 points indicates consumer pessimism.

More concerning for retailers was the proportion of people who believed it was a good time to buy a major household item.

The reading remained down 7 points following last month's 20-point fall.

ANZ chief economist Sharon Zollner said the annual inflation outlook "went ballistic", rising to 6.2 percent with house price inflation also lifting to 6.7 percent from 6.1 percent.

"The fall was particularly large for young adults, on par with the fall in the first lockdown last year," she said.

"Younger adults tend to have lower incomes and therefore be more exposed to rises in the prices of necessities."

She said heavily mortgaged 35- to 45-year-olds had also taken a significant hit.