Consumer confidence has risen to 121.4. This latest rise in confidence has been driven by attitudes towards buying major household items and increasing confidence about personal finances over both the last and the next 12 months.
A much larger majority of 60% (up 6%) of Australians say now is a ‘good time to buy’ major household items compared to just 16% (unchanged) who say now is a ‘bad time to buy’.
Also, now 34% (up 6%) of Australians believe they are ‘better off” financially than this time last year (the highest since September 22/23, 2012) compared to 27% (down 2%) that say they are ‘worse off’.
Australians are also more positive about their personal finances over the next 12 months with 43% (up 2%) saying they expect their family to be ‘better off’ financially while 14% (down 1%) expect to be ‘worse off’ financially.
Now 39% (up 2%) of Australians expect ‘good times’ for the Australian economy over the next five years compared to 18% (up 2%) that expect Australia to have ‘bad times’
And over the next twelve months, 35% (up 2%) of Australians expect ‘good times’ economically (the highest since October 29/30, 2011) compared to 29% (up 4%) of Australians who expect ‘bad times’
Gary Morgan says: “Roy Morgan consumer confidence has risen to 121.4 (up 2.9pts) after the Reserve Bank of Australia left interest rates unchanged at a record low of 3%. Driving the rise were strong increases in Australians saying ‘now is a good time to buy’ major household items (60%, up 6%) and also that families are ‘better off financially’ than this time last year (34%, up 6%).
“Interestingly, a clear difference emerged between supporters of the two major parties when it came to looking at the next 12 months as increasing numbers of ALP supporters expect to be ‘better off financially’ in 12 months time (42%, up 4%) and the Australian economy to perform better over the next 12 months (42%, up 6%) while L-NP supporters became less confident on both counts with 37% (down 1%) expecting to be ‘worse off financially’ in 12 months time and 27% (down 1%) expecting ‘bad times’ for the Australian economy over the next 12 months.
“Despite the decision by the RBA to leave interest rates unchanged, the latest Roy Morgan January unemployment figure released last week showed Australian unemployment at 10.9% (1,327,000) and under-employment at 8.8% (1,068,000). This is a record high total of 2.4 million Australians (19.7%) looking for work or looking for more work.
“The high, and growing, level of unemployment and under-employment in the Australian economy means the RBA needs to re-commence making interest rate cuts as soon as possible to stimulate the Australian economy while the Government must look seriously at undertaking workplace reforms to encourage employers to begin hiring again.”
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