Australian client cheer chilled by Omicron outbreak By Reuters

Australian consumer cheer chilled by Omicron outbreak

© Reuters. A consumer sporting a protecting face masks walks down Bourke Avenue Mall on the primary day of eased coronavirus illness (COVID-19) restrictions for the state of Victoria following an prolonged lockdown in Melbourne, Australia, June 11, 2021. REUTERS/Sandra S

SYDNEY (Reuters) – A measure of Australian client sentiment took a step again in December as an outbreak of the Omicron variant clouded the outlook for the economic system and spending over the Christmas interval.

The Westpac-Melbourne Institute index of client sentiment launched on Wednesday fell 1.0% in December, wiping out November’s 0.6% achieve.

The index studying was down 6.9% on December final 12 months, although at 104.3 it meant optimists nonetheless outnumbered pessimists.

Westpac chief economist Invoice Evans famous there have been sharp falls in New South Wales and Victoria the place COVID-19 circumstances have been highest. The survey additionally discovered extra concern about rising inflation, which can have harm spending plans.

The survey’s measure of whether or not it was an excellent time to purchase a serious family merchandise slid 5.3% in December, to be down greater than 13% on a 12 months in the past.

“The sturdy progress outlook we see for 2022 relies on a surge in client spending, as households re-emerge from restrictions and draw down on the big financial savings amassed via the COVID lockdown intervals,” mentioned Evans.

The survey’s measure on the financial outlook for the following 12 months dipped 1.6% within the month, whereas that for the following 5 years eased 0.5%.

In distinction, the measure of household funds in contrast with a 12 months in the past firmed 1.0%, whereas that for funds over the following 12 months rose 2.1%.

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