Confidence down but consumers still spending
Overall consumer confidence is at 121.2 points (down 2.3 points in a week, but up 27.7pts in 6 months) according to a report from Roy Morgan Research conducted on the weekend of September 12/13, 2009.
Consumer confidence is now 20 points higher than this time last year, when it sat at 101.2.
Of the states, Western Australians tops the August list for consumer confidence, 4.1 points higher than the national average, while Tasmanians are the least confident at 6.4 points lower than the national average.
The small fall in the weekly rating has, according to Roy Morgan’s report, been driven by decreasing confidence about the prospects for Australia over the next 12 months.
Of the Australians surveyed, 39% think we’re in for ‘good times’ financially in the next 12 months, compared to 20% expect to see ‘bad times’ ahead.
In terms of personal finances, 41% expect their family to be better off financially this time next year compared to 13% who believe that they’ll be dire straits.
Nearly half (48%) believe that now is a good time to buy major household items.
Roy Morgan CEO Michele Levine explained that the country’s consumer confidence is a key indicator of how people are likely to respond to events in terms of their expenditure and its role in generating economic activity.
“We have long known that consumer confidence, or how people respond to events such as share market crashes, petrol price increases, interest rate increases and other economic threats, is more important than the events themselves,” said Levine.