Login
ISCOVER
Consumer sentiment has fallen as concerns the Australian economy won’t perform in 2014 grow.
According to the latest Roy Morgan Consumer Confidence Rating, sentiment dropped for the second week in a row despite positive news for housing, share markets and the Australian dollar.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
Gary Morgan, executive chairman of the research company, said pessimism was growing over the outlook for 2014.
“The fall in consumer confidence was driven by decreasing confidence about the next 12 months, with 35 per cent (down two per cent) expecting ‘good times’ for the Australian economy and 43 per cent expecting to be ‘better off’ financially this time next year (also down two per cent),” he said.
“The fall in consumer confidence comes despite some clear positives last week.
“The All Ordinaries Index closed last week at 5,385.7, its highest since June 2008 before the global financial crisis. The Australian dollar reached a high above US97 cents (its highest for more than four months) and there was very encouraging news on the housing front, with a record number of auctions in Melbourne last weekend and a strong clearance rate of over 80 per cent in Sydney.”
According to the results, more than a quarter of respondents expect ‘bad times’ ahead, while the number of Australians who believe that now is the time to buy major household items dropped two per cent, to 53 per cent.
Australians said they were more confident about their personal finances compared to this time last year, with 34 per cent saying they are ‘better off’ financially than in the same period in 2012.
