ROY MORGAN WEEKLY CONSUMER CONFIDENCE GAINS 2.8PTS TO 110.5

In early July Consumer Confidence was 110.5pts (up 2.8pts in a week) according to the Roy Morgan Consumer Confidence Rating conducted during the weekend Prime Minister Julia Gillard announced details of the Carbon Tax — July 9/10, 2011. Consumer Confidence is now 15.4pts lower than a year ago, July 10/11, 2010 (125.9).

The small rise in confidence was caused by a rise in respondent’s assessment of their financial situations compared to a year ago and this time next year.

In terms of personal finances 36% (up 2%) of Australians expect their family to be ‘better off’ financially this time next year compared to 22% (down 3%) that expect to be ‘worse off’ financially.

Now 28% (up 1%) of Australians say their family is ‘better off’ financially than a year ago compared to 33% (down 4%) that say their family is ‘worse off’ financially than a year ago.

A clear majority of Australians 59% (up 1%) say ‘now is a good time to buy’ major household items compared to 17% (down 1%) that say now is a ‘bad time to buy.’

In terms of Australia’s economy over the next five years 31% (down 1%) of Australians expect Australia to have ‘good times’ economically over the next five years compared to 23% (unchanged) that expect ‘bad times’ economically.

About Australia’s economy over the next twelve months, 29% (up 2%) expect Australia will have ‘good times’ financially during the next twelve months compared to 36% (unchanged) that say we’ll have ‘bad times.’

Gary Morgan says:

“Roy Morgan Consumer Confidence has gained 2.8pts to 110.5, its biggest gain since early April 2011, on the weekend Prime Minister Julia Gillard announced details of the Government’s proposed Carbon Tax.

“Leading into last weekend there was heavy media coverage of the tax cuts, including raising the tax-free threshold to $18,000, and other positive aspects to be announced as part of the Carbon Tax compensation package. In addition the RBA’s decision last week to leave interest rates unchanged at 4.75%, appear to have had a favourable impact on Australian views of personal financial situations with 36% (up 2%) of Australians expecting their family to be ‘better off’ financially this time next year and 28% (up 1%) of Australians saying their family is ‘better off’ financially than at this time last year.

“Next week’s Roy Morgan Consumer Confidence will be able to directly measure how Australians react to the Carbon Tax announcement and particularly whether this week’s gains in confidence about personal financial situations can be sustained.”

This weekly Roy Morgan Consumer Confidence Rating is based on 1,044 face-to-face interviews conducted Australia-wide with men and women aged 14 and over conducted last weekend, July 9/10, 2011.