The federal election has done little to inspire confidence amongst consumers, as figures remain virtually unchanged.
The recent figures from Roy Morgan show that consumer confidence remains below neutral levels of 90.7, falling 0.1 percent following the weekend of the federal election.
Despite being virtually unchanged, consumer confidence remains well below the same period in 2021 (20.7 points). Moreover, these figures are 5.6 points below the 2022 weekly average of 96.3.
“Consumer confidence dropped slightly by 0.1 percent last week with no significant reaction to the previous weekend’s federal election,” shared David Plank, the ANZ Head of Australian Economics. “This is the fifth election since the survey went weekly in 2008. Of the four elections prior to this one, there has been little immediate reaction in consumer confidence, with no large swings in either direction.”
Buying sentiments have increased slightly in Australia, with 29 percent saying that now is a good time to buy a major household item, increasing by one percentage point. Moreover, there has been a three percentage point drop for those saying that now is a bad time to buy a major household item, now at 39 percent.
“Confidence going into the 2022 election was, however, well below previous pre-election levels,” continued Plank. “And it remains at a historically low level. Inflation expectations rose to 5.5 percent, its highest level since early April, and it likely reflects the rise in petrol prices.”
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