Retail could be looking up as consumer sentiment rises
Roy Morgan’s Consumer Confidence Rating is now at 116.6pts (up 1.8pts over the past week,) its highest since February last.
Confidence is now a considerable 4.8pts higher than it was a year ago, Roy Morgan figures show.
Poor consumer sentiment has been a lament cited by every retailer from JB Hi Fi, Myer to Harvey Norman, of late, so this news should come as a welcome boost to the troubled retail industry.
The recent interest rate cut, with another widely expected on Melbourne Cup Day, may also help boost sentiment further, which is particularly vital in the lead up to the Christmas sales period.
The week’s rise in confidence has been driven by a more positive outlook of economic conditions over short and longer term, Roy Morgan’s analysis indicates.
Australians are more confident about the local economy over the next year with one third expecting ‘good times’ ahead (+ 4%).
However, almost 30% of consumers still expect ‘bad times’- a drop of just 1%.
A larger majority of consumers (58%) say it is a ‘good time to buy’ major household items but almost one in five say now is a ‘bad time’ to buy big ticket items.
With regards to personal finances, more Aussies are positive with almost 40% (up 2%) saying they expect their family to be ‘better off’ financially in the next year.
Less than one in five expect to be ‘worse off’ financially.
Longer term, over the next five years 35% expect Australia’s economy to enjoy ‘good times’ (+1%) while just 20% expect ‘bad times’.