Australians Concerned About Stagnating Economy and Job Losses
Westpac-Melbourne Institute Consumer Sentiment Index
- Dipped 0.5% to 84.6 in September
- Tracks Australian households’ outlook on personal finances and the economy
- Decline reflects loss of confidence in the economy
NAB Business Confidence Survey
- Confidence dropped five points to -4 index points in August
- Indicates negative sentiment among businesses
- Decline in confidence driven by weaker trading conditions and profitability
The Australian economy is facing challenges as indicated by recent economic indicators. The Westpac-Melbourne Institute Consumer Sentiment Index and the NAB Business Confidence Survey both show a decline in confidence, particularly in the economy’s outlook and job market.
Economic Outlook and GDP Growth
- ‘Economic outlook, next 12 months’ subindex fell 2.6% to 81.2
- ‘Economic outlook, next five years’ subindex declined 1% to 90.6
- GDP grew just 0.2% for the June quarter, with a year-on-year growth rate of 1%
- GDP per capita fell for the sixth consecutive quarter by 0.4%
Unemployment Concerns
- Unemployment Expectations Index rose 3.7% to 138.4 in September
- Consumers expect unemployment to rise in the year ahead
- Unemployment expectations among consumers with a job rose 8.3%
While concerns about the economy and job market are on the rise, there seems to be some relief in terms of interest rates and cost-of-living pressures. Family finances have shown improvement, driven by moderate inflation and fiscal support measures.
Reserve Bank’s Focus
- Main focus on the balance of demand and supply in the economy
- Concerns around consumer demand and inflation persist
- Expected to leave the official cash rate unchanged at 4.35%
The Reserve Bank of Australia is closely monitoring the economic situation, with the next board meeting scheduled for September 23–24. The recent NAB Business Survey for August also highlights challenges in business conditions, with a drop in employment indicating potential softness in the labor market.
In conclusion, the Australian economy is showing signs of weakness, with concerns about economic growth, job losses, and inflation persisting. It is essential for policymakers and businesses to address these challenges to ensure a stable and sustainable economic future for all Australians.