Invest
Consumer confidence crumbles as catastrophic fires continue
The bushfire disaster has taken a toll on consumers’ confidence in the Australian economy as a whole, according to new research.
Consumer confidence crumbles as catastrophic fires continue
The bushfire disaster has taken a toll on consumers’ confidence in the Australian economy as a whole, according to new research.

The latest ANZ-Roy Morgan consumer confidence survey revealed that confidence is at a four-year low despite it being at the start of the year when Aussies are typically more upbeat about their future.
Consistent with this, the weakness in confidence was due to a big drop in the economic outlook. “Current economic conditions” were down by a massive 12.9 per cent, while “future economic conditions” fell 8.1 per cent.
“Current economic conditions are at their lowest level since the global financial crisis, while sentiment towards the future economic outlook is at its lowest level since 1994,” the survey revealed.
David Plank, ANZ head of Australian economics, said, “Against the backdrop of the weekend’s catastrophic bushfires, it is not surprising that consumer confidence declined.

“But the reported decline of 1.7 per cent since the last survey in mid-December understates the weakness when one considers that the New Year usually sees a strong gain in sentiment.”
Despite confidence falling, the index remains above 100 points, indicating consumers are more optimistic than pessimistic.
In contrast, financial conditions gained. “Current finances” rose 4 per cent, while “future finances” were up 0.3 per cent.
“The ‘time to buy a household item’ gained 4.8 per cent, recovering from a fall of 6.4 per cent seen in the last reading of the previous year,” Mr Plank said.
The four-week moving average of “inflation expectations” was stable at 4.0 per cent, though weekly readings saw a sharp fall, which should result in a weaker reading in the coming week.
“This offers the prospect that the impact on overall consumer confidence from the weekend’s terrible events may be relatively short-lived. The policy steps taken by the federal government in recent days could contribute to that outcome. We are mindful, of course, that there is likely still bad news to come about the impact of last weekend’s fires. There is also a lot of hot and dry weather to come before the bushfire season is over,” Mr Plank concluded.
About the author

About the author


Stock market
International stocks: Diversifying your portfolio beyond Australia
In an increasingly globalized market, Australian investors have the opportunity to enhance their investment portfolio by incorporating international stocks. Diversifying your investments globally can ...Read more

Stock market
Stock market rally likely to continue regardless of Fed minutes tone, says deVere CEO
The bull run that has propelled Wall Street's major indexes to record highs this month is expected to continue regardless of the tone of the upcoming Federal Reserve minutes, according to Nigel Green, ...Read more

Stock market
US stock rally driven more by valuation growth than earnings, leaving tech names vulnerable: Innova
The strong gains in US stocks over the past year, particularly in the technology sector, have been driven more by expanding valuations than underlying earnings growth, leaving them exposed to a ...Read more

Stock market
Sun Silver to make its ASX debut with a $13 million IPO
Sun Silver Limited (proposed ASX Code: "SS1") has announced the opening of its Initial Public Offering (IPO) today, aiming to raise a minimum of $10 million and a maximum of $13 million (before costs)Read more

Stock market
Nasdaq hits record high, underscores the value of tech in investment portfolios
The Nasdaq Composite's surge to an all-time high last Friday highlights the importance of incorporating technology into investment strategies. Read more

Stock market
Apple sets an unprecedented profit pace within the GAFAM group in 2023
After navigating through the economic difficulties presented in 2022, the technology sector has demonstrated resilience and growth, with many companies seeing increases in revenue and stock value. Read more

Stock market
Fintech startup okoora unlocks over $3 billion in forex savings for businesses
Fintech innovator okoora has announced it has saved customers a monumental amount over $3 billion through international foreign exchange transactions. Read more

Stock market
Google's Gemini edges out ChatGPT4 in groundbreaking AI showdown
Google's latest AI model, Gemini, has edged out OpenAI's ChatGPT4 in a recent set of rigorous multi-discipline tests, marking a significant milestone in the large language model (LLM) sector. Read more

Stock market
International stocks: Diversifying your portfolio beyond Australia
In an increasingly globalized market, Australian investors have the opportunity to enhance their investment portfolio by incorporating international stocks. Diversifying your investments globally can ...Read more

Stock market
Stock market rally likely to continue regardless of Fed minutes tone, says deVere CEO
The bull run that has propelled Wall Street's major indexes to record highs this month is expected to continue regardless of the tone of the upcoming Federal Reserve minutes, according to Nigel Green, ...Read more

Stock market
US stock rally driven more by valuation growth than earnings, leaving tech names vulnerable: Innova
The strong gains in US stocks over the past year, particularly in the technology sector, have been driven more by expanding valuations than underlying earnings growth, leaving them exposed to a ...Read more

Stock market
Sun Silver to make its ASX debut with a $13 million IPO
Sun Silver Limited (proposed ASX Code: "SS1") has announced the opening of its Initial Public Offering (IPO) today, aiming to raise a minimum of $10 million and a maximum of $13 million (before costs)Read more

Stock market
Nasdaq hits record high, underscores the value of tech in investment portfolios
The Nasdaq Composite's surge to an all-time high last Friday highlights the importance of incorporating technology into investment strategies. Read more

Stock market
Apple sets an unprecedented profit pace within the GAFAM group in 2023
After navigating through the economic difficulties presented in 2022, the technology sector has demonstrated resilience and growth, with many companies seeing increases in revenue and stock value. Read more

Stock market
Fintech startup okoora unlocks over $3 billion in forex savings for businesses
Fintech innovator okoora has announced it has saved customers a monumental amount over $3 billion through international foreign exchange transactions. Read more

Stock market
Google's Gemini edges out ChatGPT4 in groundbreaking AI showdown
Google's latest AI model, Gemini, has edged out OpenAI's ChatGPT4 in a recent set of rigorous multi-discipline tests, marking a significant milestone in the large language model (LLM) sector. Read more