Rising Public Consumption & Rising Consumer Confidence

At a time when consumption in many other parts of the world is falling and economies are contracting, the forward estimates in public consumption growth (Jan 2009 WA Dept of Finance and Treasury figures) are for growth of 2.75% in 2008-09 and 2.25% in 2009-10. Household consumption is forecast to grow modestly, by 3.75% in 2008-09 and 3.5% in 2009-10, both figures ahead of the national average.

Australian consumers feel that the worst of the economic turbulence is behind them WA consumers are more confident than those in other parts of Australia. The June 2009 Sensis Consumer Report found a net balance of 39 per cent of Australians reporting confidence in their financial prospects for the year ahead. This result was an increase of 18 percentage points from last quarter, the largest increase in confidence recorded in a single quarter since the start of the Sensis® Consumer Report in May 2004. These latest results are a significant turnaround from the 40 percentage point deterioration in confidence recorded between November 2007 and February 2009.

Rising business confidence

Australian business agrees. Business confidence results from the June 2009 Sensis Business Index show a net 30 per cent of SME operators felt confident about their business prospects for the year ahead. While business confidence was still lower than consumer confidence this quarter, it is important to note business confidence also rose 18 percentage points from the previous quarter, and for business confidence this was also the largest increase in a single quarter since the start of the Sensis® Business Index in 1993.