The advertising Industry trade magazine reported that confidence rating dropped 6.3 points since February to 109.5 for the month of March. This figure was 11.2 points below the March 2007 result of 120.7, and the lowest rating since September 2006.
The key factor in the confidence drop was a 7% decline in the number of Australians (39%) who consider now a good time to buy major household items, the lowest result since April 2001. Comparatively, 29% of people say now is a bad time to buy (up 6%).
Gary Morgan, executive chairman of Roy Morgan, said the Reserve Bank's measures to curb spending are now starting to take full effect.
