ANZ (ASX: ANZ) is reporting a sharper-than-usual drop in spending in early 2022 due to caution around the Omicron variant of COVID-19, especially in NSW where spending in the week to 2 January was 25 per cent lower year-on-year.
However, ANZ Research senior economist Adelaide Timbrell emphasises the recent drop is nowhere near lockdown levels.
"I don’t think it’s cause for too much concern for the 2022 outlook of spending yet. The Omicron caution is something that’s going to develop and change quickly," Timbrell tells Business News Australia.
"The good signs for spending in 2022 are that people are shifting their spending online rather than just not spending altogether, particularly for discretionary categories like non-food retailing and dining.
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