SOFT OPENING - CONSUMER CONFIDENCE A KEY FACTOR IN RECOVERY

As states and territories reopened their economies in various phases throughout May and June, it became clear that simply being open is not enough to get firing on all cylinders again. First, there are safety regulations limiting how many patrons a business can serve at a time. Just as important is consumer confidence. If shoppers don’t feel safe visiting a business, they’re not going to, and there’s no forcing them. Some services requiring intimate personal contact have an even harder time with this. Just because someone can get a massage doesn’t mean they’re comfortable with it.

- DAMIEN MARTIN

CONSUMER CONFIDENCE

By all accounts, confidence in the Australian economy is higher than in April during the height of lockdowns. A Melbourne Institute and Westpac index saw a record jump in May and a solid jump in June.

“Remarkably, consumer confidence is now back around pre-COVID levels, having recovered all of the extreme 20% drop seen when the pandemic exploded in March-April,” Westpac chief economist Bill Evans told Reuters. “Confidence has clearly been buoyed by Australia’s continued success in bringing the coronavirus under control, which has in turn allowed for a further easing in social restrictions over the last month.”