Consumer Confidence Falls CE Industry Could Be Hit
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.
“Consumer Confidence in the booming states of Queensland (114.9) and Western Australia (114.6) is well above the national average, whereas confidence in the traditionally strong eastern states of NSW (106.7) and Victoria (105.3) is below the average,” Morgan said.
The interviewing for the March Roy Morgan Consumer Confidence Rating was conducted before last week’s 0.25% interest rate rise, Morgan said, although it had been widely reported beforehand that a 12th consecutive rate rise was likely.
The percentage of Australians (30%) who say their personal financial situation is better now than it was last year dropped 5%, while the number of those who say they are now worse off (30%) is up 5%. This is the first time since September 2006 that those “worse off” has matched those “better off”.
Currently, 32% of people expect good economic conditions in Australia in the next year (down 4%), higher than the 30% (unchanged) who expect bad economic conditions in the next 12 months.