Australian consumer confidence plunges to worst level since 1990s after RBA rate rise
Summary
Australian consumer confidence has dropped to its lowest level since the 1990s after the Reserve Bank of Australia raised interest rates four times this year. Higher rates and rising living costs have made many households pessimistic about their finances and the economy.Key Facts
- The consumer confidence index fell about 20% since the interest rate increases began.
- In October, confidence dropped 4.7% to 80.4%, the worst level since April’s Middle East conflict.
- After the RBA rate hike on 29 September, the index fell further to 67.2%, the lowest since the late 1990s.
- Rising fuel prices have increased the average weekly petrol bill by $20 compared to early 2023.
- Mortgage holders feel the most pessimistic due to higher borrowing costs, with an index score of 77.
- People who own their homes outright also showed a big drop in confidence as the housing market worsens.
- Renters remain the most optimistic group with a confidence score of 84.8 points.
- Despite fears of job losses, job vacancies are at a two-year high, suggesting the job market remains relatively strong.
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