Australians Who Plan to Get Vaccinated Far More Optimistic Than Those Who Don’t

(Bloomberg) -- Australian consumers who intend to get vaccinated are far more optimistic than those who don’t intend to have a jab, Westpac Banking Corp.’s October household sentiment survey showed.

Respondents who are not vaccinated but intend to be recorded an index reading of 122 points, while those who aren’t vaccinated and don’t intend to be posted a reading of 84.8, Westpac’s monthly survey showed Wednesday. The overall consumer sentiment index slid 1.5% from last month to 104.6.

“The confidence level of those not intending to get vaccinated has also fallen quite sharply in the last month,” said Bill Evans, chief economist at Westpac. “Encouragingly, the size of this group has fallen as well, accounting for only 6% of respondents in the October survey compared to 9% in September and just under 20% at the start of the year.”

Sydney on Monday took a tentative step to emerging after 106 days of lockdown and will open further once the vaccination rate hits 80%. Melbourne is also vaccinating rapidly even as its Covid cases remain elevated. 

Australia’s economy likely contracted sharply last quarter due to lockdowns, with New South Wales and Victoria, the states surrounding Sydney and Melbourne respectively, accounting for about 55% of gross domestic product. 

Treasurer Josh Frydenberg said in a speech Wednesday that GDP probably fell 3% or more in the three months through September, but expects a rapid recovery as the economy reopens.

“The success and pace of vaccine-led re openings in New South Wales and Victoria in conjunction with the efforts of Queensland and Western Australia to lift vaccination rates while remaining Covid-free will likely determine the profile of national confidence over the next few months,” Evans said today.

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