Covid-19: National mood sinks to new depth

Almost one in two Australians believes life is worse than it was this time last year.

An almost deserted city street in Melbourne. Picture: Andrew Henshaw

Almost one in two Australians believes life is worse than it was this time last year, prompting market analysts to question whether the downturn in the national mood will translate into a decline in consumer spending.

The results of marketing analytics and strategic advisory firm Forethought’s August Mood & Pulse survey contrast with strong economic growth figures for the June quarter, which preceded crippling lockdowns in NSW, Victoria and the ACT.

The survey found 44 per cent of Australians believed life was worse than this time last year, 34 per cent thought it was about the same and just 22 per cent believed things were better.

The national mood has continually declined since peaking in May, but it has improved since Australians were enduring their first lockdown in April last year, when for obvious reasons 82 per cent said life was worse than the previous year, with 13 per cent saying it was about the same and just 5 per cent saying it was better.

The survey registered all-time lows for measures of positivity such as happiness and love, and increases in anxiety and anger.

Forethought general manager Rachel Edwardes said the findings showed the national mood was “closing in on rock bottom”.

“The emotional and behavioural shifts we have observed suggest Australians are beginning to effectively hide under the pillows when it comes to operating out in the world, and this may translate into challenging news for brands and the economy,” Ms Edwardes said.

The survey also measured trust in state governments, which remained relatively stable last month, with Victoria retaining the lowest level compared with other states.