Consumer confidence crisis
Australian consumers’ confidence in the global economy has taken a significant dive in the past six months, with more than a third (37 per cent) saying they believe a global recession is imminent.
The Nielson Company’s latest Global Consumer Confidence Survey, which measures consumer confidence, key concerns and spending habits in 51 countries, saw Australia drop to 109 points on the Nielson Consumer Confidence Index — down 11 points in the past six months.
Globally, the index was down six points, the largest single drop in the past three years.
According to Nielson director of client service Tim Rose, rising interest rates, inflation and petrol prices have left Australian consumers unsteady in what has been “the most turbulent period for the global economy in several decades”.
Australian consumers are still among the most optimistic in the world, however, ranking eighth out of the 51 countries surveyed.
Australian consumers were particularly concerned about interest rates, with 64 per cent citing rate rises as a major concern in an economic slowdown, as well as inflation and unemployment.
“The true price of home ownership becomes all too apparent for some when the economy takes a dip, which is evident in the latest round of our survey resultsÉ,” Rose said.
According to Nielson, consumer pay packets are being stretched like never before, with 11 per cent of survey respondents saying they have no spare cash after their essential bills have been paid.
For those with remaining cash, nearly half (42 per cent) place it into savings accounts or use it to pay off debt. That said, plenty of Australians are still using extra cash to pay for a holiday.
Work/life balance emerged as a major concern for many Australians, right up there with the economy and debt and ahead of health issues.
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