Roy Morgan Research (RMR) yesterday evening released its weekly consumer confidence index, which fell for the third consecutive week and registered the lowest reading since November 2012:
According to Gary Morgan:
“Roy Morgan Consumer Confidence has fallen for the third consecutive week to 112.8 (down 1.3pts) and is now at its lowest since November 2012. The fall in Consumer Confidence comes after the Australian dollar dipped below 92US cents for the first time since September 2010 as worries mount about many parts of the global economy – including China, source of many of Australia’s commodities exports.
“An increasing number of Australians (37%, up 4%) expect ‘bad times’ for the Australian economy over the next 12 months – the highest for nearly a year since July 2012 while just 24% (down 5%) expect ‘good times’ – the lowest for nearly two years since August 2011.
“Constant leadership speculation around the Federal Government is a clear distraction preventing the Gillard Government from effectively implementing its policies – and also undermining general confidence in the Australian community. This week should mark the end of the leadership speculation as Parliament is not due to meet again until after the Federal Election – set for September 14, 2013.”
As shown below, the Roy Morgan Consumer Confidence Index is highly correlated with the Westpac-Melbourne Institute Consumer Sentiment Index, suggesting that the latest downturn in the Roy Morgan’s weekly survey is significant may well be reflected in next month’s Westpac Melbourne Institute release.
