Confidence rebounds – ‘a good time to buy’

The weekly Roy Morgan consumer confidence rating has rebounded (after three consecutive falls) to 114.7 (up 1.9pts in the two weeks since June 22/23, 2013), following the return of prime minister Rudd.

Confidence is now slightly lower (0.4pts) than a month ago (June 8/9, 2013 – 115.1) although 2.9pts higher than at the same time a year ago when it was 111.8 (July 7/8, 2012).

The week’s rise has been driven mainly by increasing confidence about Australia’s economic conditions over the next year and the longer term, and is seen as a positive indicator for the car sales industry.

Australians are confident about the Australian economy with 29% (up 5%) of Australians expecting ‘good times’ economically over the next twelve months compared to 30% (down 7%) that expect ‘bad times’ for the Australian economy.

Over the longer-term 35% (up 2%) of Australians expect ‘good times’ for the Australian economy over the next five years compared to 19% (down 3%) that expect Australia to have ‘bad times’.

Of Australians, 41% (up 1%) expect to be ‘better off’ financially over the next 12 months while only 15% (up 1%) expect their family to be ‘worse off’ financially.

Now 53% (down 3%) of Australians say now is a ‘good time to buy’ major household items (the lowest since September 8/9, 2012) compared to 19% (unchanged) that say now is a ‘bad time to buy’.

In addition Australians are  more concerned about their personal finances compared to this time last year with 30% (down 1%) of Australians saying they are ‘better off’ financially than this time last year and 31% (up 3%) that say they are ‘worse off’ financially.

Gary Morgan says: The boost given to Consumer Confidence after the removal of prime minister Gillard may prove to be short-lived if uncertainty about when the Federal Election will be held is allowed to continue.

“The most striking impact of Rudd’s return is clearly the improved sentiment regarding the Australian economy with 29% (up 5%) of Australians now expecting ‘good times’ for the Australian economy over the next 12 months and 35% (up 2%) of Australians expecting ‘good times’ for the Australian economy over the next five years.”