Early election fears dent confidence
The prospect of a double dissolution election is worrying consumers.
The ANZ-Roy Morgan consumer confidence index fell 1.3 per cent in the week ending March 27, with levels edging lower in the past fortnight following recent highs.
Prime Minister Malcolm Turnbull’s move to bring the budget forward as part of a likely early election on July 2 was behind the slump, the survey indicates.
ANZ’s head of Australian economics Felicity Emmett says greater uncertainty in the lead-up to an election can weigh on confidence, and Australia hasn’t had a double dissolution election since 1987.
“Moreover, the government’s decision to bring forward the commonwealth budget is likely to put the issue of strained public finances firmly at the front of consumers’ minds,” she said.
Emmett said the latest falls on the stock market also may have played a part.
Overall sentiment was dragged down by views about the 12-month economic outlook, which dropped five per cent.
However, respondents’ views towards the economic outlook in the next five years rose 2.3 per cent.
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Meanwhile, consumers’ perceptions of their current finances dipped 4.1 per cent, whereas views of future finances edged 0.6 per cent higher.
ANZ said consumers’ opinions about their personal finances have been on an upward trend since October.
And while respondents’ views towards the economic outlook have picked up in the past six weeks, they remain well below their long-run average, the report showed.
AAP
