Consumers still feel the pinch as inflation and world crises continue globally. In a new report, consumer confidence levels have remained virtually unchanged since last week but remain well below the yearly average.
The most recent Roy Morgan data shows that consumer confidence levels have increased 0.2 points to 81.8, virtually unchanged since last week.
These figures remain below the 2022 weekly average of 93.4 and are 22.5 points below the same week a year ago (104.3).
Confidence was down in Victoria and Western Australia but increased across South Australia, New South Wales and Queensland.
“Consumer confidence steadied as concerns about the economic outlook ebbed, likely driven by the strong labour market print last week,” said David Plank, Head of Australian Economics. “High inflation and rising interest rates are feeding into households’ weak assessment of their financial conditions.”
Despite this, spending behaviour is yet to be impacted, Plank explained. “Inflation expectations dropped to a one-month low, with global fuel prices moderating,” he said. “Australia’s wholesale petrol prices declined last week, fuelling hopes that retail prices will moderate. This will likely be good news for sentiment if it occurs.”
Buying intentions are still low, with 23 percent of Australians saying that now is a good time to buy major household items. This has dipped two percentage points. In contrast, nearly half (48 percent) say that now is a bad time to buy major household items, increasing by a single percentage point since last week.
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