Roy Morgan: consumer confidence remains subdued

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Roy Morgan released their Consumer Confidence rating for the weekend of July 14/15, 2012, which at 109.1 points is only 1.1pts higher than it was a year ago:

According to Roy Morgan:

The fall in this week’s Consumer Confidence has been driven mainly by less confidence about family financial situations over the next year and by less confidence in Australia’s short and longer term economic prospects.

Australians’ confidence about Australia’s economy over the next twelve months is down with 27% (down 3%) expecting Australia to have ‘good times’ economically over the next 12 months compared to 34% (up 1%) of Australians that expect ‘bad times’.

Over the next five years less Australians (33%, down 2%) expect Australia’s economy to have ‘good times’ economically compared to 24% (up 2%) that expect ‘bad times’.

Australians have less confidence about their personal finances over the next 12 months with 35% (down 2%) expecting to be ‘better off’ while 25% (up 3%) say they expect their family to be ‘worse off’ financially.

Now 30% (up 1%) of Australians say their family is ‘better off’ financially compared to a year ago while 33% (unchanged) say their family is ‘worse off’ financially.

Its not all bad news however – 56% of those surveyed still say “now is a good time to buy” major household items, as opposed to 19% – so it appears the easing of rates is helping to maintain some gloom, but not all doom. With the RBA holding fire today in a bullhawkian change of heart, in the absence of more interest rate cuts, we shouldn’t expect more confidence anytime soon.