Consumer confidence takes a dive

Consumer confidence dropped sharply in December and is now below average levels, the Westpac McDermott Miller consumer confidence index says this morning.

The drop in confidence appears to be partly a response to the change in Government.

The biggest drop in confidence was among better households. Confidence rose slightly among households on lower incomes.

The survey showed households were concerned about the general economic environment and their personal financial situation.

''This will put a dampener on spending plans ahead of the holidays,'' Westpac senior economist Satish Ranchhod said.

The change in Government signalled a different policy environment in coming years, including changes to family support payments, minimum wage levels, environmental policy and housing market policies.

Against the changing backdrop, it was not surprising many households were apprehensive about how the economic environment would shape up over the next few years, he said.

Add a Comment