Australian consumer sentiment has fallen sharply this month, as ongoing flooding, supply chain woes, inflation, and Russia’s invasion of Ukraine all combine to destroy confidence.
The consumer confidence index dropped 4.2 per cent to 96.6 points in March, according to Westpac, the lowest it has been since September 2020.
When the index falls below 100, it means that pessimists outnumber optimists.
“The war in Ukraine; the floods in southeast Queensland and northern NSW; ongoing concerns about inflation and higher interest rates were all likely to impact confidence, although the size of the decline is still notable,” Westpac Chief Economist Bill Evans said.
Evans also points out that, when asked to recall recent news events, 38.7 per cent spoke of news on inflation, compared to just 8.6 per cent a year ago. This is a 14-year high, and shows that inflation “has really exploded” in the minds of the public.
