Consumer Confidence Up Spending On The Way Back
Consumer electronic vendors are set to reap the benefits of an increase in consumer confidence running into the peak Xmas New year buying period claim researchers.
According to Roy Morgan Consumer Confidence Ratings consumer confidence in Australia is up 3.4 points to 117.8, its highest level since January 2008 (118.6).
The growth in consumer confidence in the past week has been driven by more Australians saying now is a good time to buy major household items, in addition to an increase in confidence regarding the next 12 months.
“Very good news for Australian retailers is that 54% (up 5%) of Australians say ‘now is a good time to buy’ major household items,” said executive chairman Gary Morgan. “This is the highest level for two years â€” which is when the global credit crunch first began to slowdown the world economy in July 2007.”
Morgan said the rise in consumer confidence is a positive sign Australians believe the slowdown is over, however there remain a number of significant issues still affecting the economy.
“Despite the increases in the Roy Morgan Consumer Confidence Rating in recent weeks, the sleeper remains unemployment and ‘under-employment'”, he said. “The latest Roy Morgan June 2009 unemployment estimate shows 1.83 million Australians either looking for work or looking for more work.”