Uncertain times continue, as Australian Consumer Sentiment hits near 3-year low.
RFI’s DBM Atlas Consumer Sentiment Index fell to 87 in April (the lowest point since the pandemic) revealing continued pessimism among consumers towards their personal finances and the Australian economy overall.
Consumer sentiment is now at the lowest point since September 2020 – when Australians reacted to the Delta wave of the COVID19 pandemic – with data from RFI telling a worrying tale for Australian consumers and the organisations managing their finances.
RFI Global’s Kate Wilson explains that consumer confidence in Australia has dropped significantly, hitting its lowest point since the pandemic. The research reveals a decline in financially secure customers as the cost of living rate rises erode savings buffers built during the pandemic. Australians from all demographics, including high-income earners, have been affected by the decline in confidence due to increases in mortgage rates. Although one-third believe things will improve over the next 12 months, the majority do not, prompting shifts in consumer behavior towards greater reliance on credit. Wilson stresses the importance of banks supporting their customers and providing reassurance during this time of declining confidence and eroding financial security.