AUSTRALIA - SYDNEY. A measure of Australian consumer sentiment slipped in January as a surge in coronavirus cases filled up hospitals and soured the national mood, curbing spending and mobility in what is typically a holiday-heavy month.
The Westpac-Melbourne Institute index of consumer sentiment released on Wednesday dropped 2.0% in January, after falling 1.0% in December.
The index reading was down 4.5% from January last year but still at 102.2, meaning optimists still slightly outnumbered pessimists.
Westpac chief economist Bill Evans said the drop was relatively modest given the rapid spread of the Omicron variant in the country, though he noted responses in the Jan 10-14 survey period showed a deterioration as the week went on and new cases mounted.
Read Also: Indonesia to Require Palm Oil Export Permits
The main weakness came in the survey's measure on the economic outlook for the next 12 months which slid 9.6%, while that for the next five years sank 6.1%.
A measure of family finances compared with a year ago gained 7.5%, perhaps reflecting higher savings levels, though the outlook for finances over the next 12 months fell 2.8%.
Somewhat surprisingly, the survey's measure of whether it was a good time to buy a major household item bounced 2.8%, after a sharp drop in December.
Data on bank cards has shown spending on services fell steeply in the first two weeks of January but demand for goods held up, particularly for online shopping.
