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This Week Saw Major Drop in Buying Intentions, Consumer Confidence
Australians are feeling less confident than ever, according to a new report from Roy Morgan. There has been a significant drop in consumer confidence, now hitting the same low levels last seen in August 2020.
Australian consumer confidence is now below 90 points (89.3), which is the lowest point it has been since August 2020. This 1.2 point drop is the third consecutive drop in three weeks.
Consumer confidence is now 23.2 points below the same period as last year and is 7.5 points below the 2022 average of 96.8.
“Last week’s decline was mainly driven by drops in the subindices that capture the ‘financial situation compared to a year ago’ and whether it is a ‘good time to buy a major household item’,” said David Plank, the ANZ Head of Australian Economics.
Only 26 percent of Australians say that now is a good time to buy a major household item, down one percentage point. This is the lowest figure since April 2020, when the pandemic first took hold. In contrast, there has been a lift in negative buying intentions, with 44 percent saying that now is a bad time to buy a major household item. “This suggests that cost of living concerns are front and centre for consumers,” said Plank.
“Among the respondents ‘paying off their home loan’, confidence dropped 0.6 percent, falling a cumulative 14.7 percent over the past three weeks. Confidence was 2.7 percent lower for people who ‘own their home’, while it rose 0.5 percent for people who are ‘renting’. Household inflation expectations rose 0.2ppt to 5.3 percent amid higher petrol prices,” he said.
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