Survey: Australian consumer sentiment during the coronavirus crisis

| Survey
Australian consumers are feeling less optimistic and more pessimistic about the economic recovery than in prior weeks as they face inflationary pressures.

In Australia, optimism about the economy is below March 2022 levels but higher than at the onset of COVID-19. Households increased spending and decreased saving in response to inflation. Consumers are willing to pay more in certain categories, but for essentials, they switch brands or wait for product to go on sale. Net intent to spend was negative for most categories except essentials and daily commute. Nearly two-thirds of Australians engaged in normal out-of-home activities, three in five with modified behavior. Digital and omnichannel adoption continue as consumers explore new technology and at-home alternatives to out-of-home activities. Most tried another brand or retailer; more than 80 percent intend to continue the behavior.

These exhibits are based on survey data collected in Australia on August 26–September 2, 2022. Check back for regular updates on Australian consumer sentiments, behaviors, income, spending, and market expectations.

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Australians are more optimistic than their western peers
One-fourth of Australians are optimistic about the economic recovery, slightly down from March 2022
Optimism levels of high-income households have sharply declined for the first time since the onset of COVID-19
Millennials and vaccinated consumers are more optimistic than others
In the past month, more Australians have seen an increase in spending and decrease in savings
Australians are increasingly not planning to splurge; younger and high-income consumers are exceptions
Australians intend to splurge on out-of-home activities, with Gen Z intending to spend on personal services, fitness, and cosmetics
Consumers report negative net intent to spend across categories except essentials and daily commute
Australian consumers say price increases are the key driver for both higher and lower spending
Spending intent remains negative across most categories except groceries
About three in five Australian consumers say they are engaging in out-of-home activities
Depending on the category, about 50 to 70 percent of consumers have modified their behavior when out of home
About 60 percent of consumers have changed how they engage in out-of-home activities; unvaccinated respondents are the exception
Relevance of social media and omnichannel continues in purchase behavior
Australians are embracing omnichannel shopping, even in the traditional store categories
Social media has the strongest influence on Gen Z and millennials across most categories
More than two-thirds of respondents engage more than once a week with Facebook and YouTube
More than two-thirds of respondents engage on some entertainment platforms, with Netflix being used the most
Shifts in loyalty and behavior have accelerated, with most consumers intending to maintain their new behavior
Intent to use digital services after the COVID-19 crisis subsides remains high
Consumers continue to explore new technology and intend to intensify their usage
Consumers’ usage of at-home alternatives to out-of-home activities continues to increase
Brand switching continues, based on perceived value
New shopping behavior most common among Gen Z, millennials, and middle- and high-income consumers
Three in five consumers have experienced stockouts, primarily in the grocery category
About half of consumers whose products go out of stock are switching retailers or brands
Value is the top reason for brand switching; sustainability is next for younger consumers, personal choice for older consumers
Retailer switching is being driven by value, availability, choice, and convenience
Most Australian consumers have observed a general price increase; three in four have observed an increase in grocery prices
While consumers are willing to pay some price increases, they are taking various approaches to offset the increase
Most consumers who switched brands chose store brands; most who switched retailers sought better prices and promotions
Concerns about the economic impact of the Ukraine invasion center on inflation and the supply of oil and gas
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Global surveys of consumer sentiment during the coronavirus crisis

Global surveys of consumer sentiment during the coronavirus crisis

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