Consumer confidence highest since January new year sales

The weekly Roy Morgan consumer confidence rating shows confidence rising to 123.8 points (up 2pts since April 13/14, 2013). This figure is now 11.4pts higher than it was a year ago, April 21/22 2012.

The rise has been driven by increasing confidence about Australia’s economic conditions over the next 12 months and respondent’s decreasing worries about their own financial situations concerning the last year and the next 12 months.

More Australians (37%, up 3%) expect ‘good times’ economically over the next twelve months for the Australian economy compared to 24% (down 1%) that expect ‘bad times’.

Now 38% (up 1%) of Australians expect ‘good times’ for the Australian economy over the next five years compared to 17% (unchanged) that expect Australia to have ‘bad times’.

Australians are less worried about their personal finances compared to this time last year with just 24% (down 3%) of Australians saying they are ‘worse off’ financially than this time last year compared to 33% (unchanged) that say they are ‘better off’ financially — this is the highest positive differential on these two indicators for more than two years — since October 23/24, 2010.

Also only 11% (down 3%) of Australians expect to be ‘worse off’ financially over the next 12 months while 43% (unchanged) expect their family to be ‘better’ financially.

Now 58% (down 1%) of Australians say now is a ‘good time to buy’ major household items compared to 14% (unchanged) that say now is a ‘bad time to buy’.

Gary Morgan says:  “The increase in consumer confidence comes as federal treasurer Wayne Swan prepares to deliver the federal budget early in May. Despite promising for years to deliver a budget surplus this year, the Gillard government has recently admitted there will be another Budget Deficit this year.

“The treasurer must use next month’s federal budget to direct government spending in a targeted way to increase productivity in the Australian economy, and also cut wasteful spending. Doing so will improve the economy’s prospects and also offer renewed hope to the 2.3 million Australians that remain unemployed or under-employed — according to the Roy Morgan March unemployment estimate.”