Poll finds increased economic pessimism

24 Dec 2009, 7:26 am   -   Source: AAP
Share This

Voters are more pessimistic about costs and job security in the first half of next year following three interest rate rises in a row, a new poll shows.

Voters are more pessimistic about costs and job security in the first half of next year following three interest rate rises in a row, a new poll shows.

The number of people who think their standard of living will get worse jumped to 24 per cent from 19 per cent in June, the Newspoll published in The Australian on Thursday shows.

The poll was taken after the last official interest rate rise on December 1.

Last Christmas, in the midst of the financial crisis, 27 per cent thought their standard of living would drop.

Coalition supporters were more pessimistic about the future than Labor supporters: those who thought things would get better fell four points to 13 per cent, while those who thought things would get worse rose three points to 28 per cent.

The Reserve Bank's decision to lift the official cash rate and the extra rises implemented by three of the four major banks appear to have hit consumer confidence, The Australian says.

Australian Retail Association executive director Russell Zimmerman said the three successive interest rate hikes had made consumers more cautious and that was affecting Christmas spending.

Retailers were reporting slow trading last week, 54 per cent saying trade was below what they experienced at the same time last year.

Mr Zimmerman said retailers had to be prepared for a "bumpy ride".

  • Follow us: 
  • Follow us on Facebook
  • Follow us on Twitter
  • Follow us on Youtube