RTTNews | Jan 19, 2022 01:25AM EST

01:25 Wednesday, January 19, 2022 (RTTNews.com) - Australia's consumer confidence weakened moderately at the start of the year, survey results from Westpac showed on Wednesday.

The consumer sentiment index fell 2 percent to 102.2 in January from 104.3 in the previous month.

However, Westpac said this was surprisingly solid result given the rapid spread of the omicron COVID variant over the last month. The 2 percent decline was much slower than the weakness showed during the first month of the delta outbreak in NSW and the second wave outbreak in Victoria.

Among sub-components, consumers' near-term expectations for the economy showed the biggest fall.

The 'economic conditions, next 12 months' sub-index dropped 9.6 percent to 94.8 in January. Medium-term expectations for the economy were also pared back but remained optimistic overall, the 'economic conditions, next five years' sub-index falling 6.1 percent to 103.6.

Consumers reported a significant improvement in their finances relative to a year ago. This sub-index lifted by 7.5 percent to 95.6, a nine-month high. Meanwhile, consumers were unsettled about the outlook for their finances. The 'finances, next 12 months' sub-index fell 2.8 percent to 108.1.

The survey detail gives some evidence that consumers remain inclined to spend despite the Omicron surge with the 'time to buy a major household item' sub-index rising 2.8 percent to 108.9 in January.

The Westpac Melbourne Institute house price expectations index fell 4.8 percent to 143.4 in January, its lowest level since November 2020.

The Westpac Melbourne Institute unemployment expectations index increased 8.2 percent to 112.7. At the same time, homebuyer sentiment improved in January. The 'time to buy a dwelling' index lifted 6.3 percent in January.

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