Ongoing warning signs about waning consumer confidence are a clear sign the Turnbull Government should spend more time fighting for jobs and growth and less time fighting with itself.
The latest ANZ-Roy Morgan Consumer Confidence Rating released today shows a sharp 3.6 per cent drop in the consumer outlook.
This is just the latest in a string of concerning consumer and jobs data, which the Government is either too preoccupied with itself to worry about or too incompetent to address.
The Westpac Melbourne Institute Consumer Sentiment report shows drops of 2.4 per cent and 2 per cent respectively over the year in how people feel about their family’s finances compared to the same time last year and in the next 12 months.
Household consumption is more than half of Australia’s economy, so the effects of falling confidence ripple out across every sector and industry.
In the most recent National Accounts household consumption contributed just 0.2 percentage points to quarterly GDP growth – the weakest contribution since March 2013. The August retail trade figures show turnover is growing at the slowest annual rate since 2012, while company profits have been flat throughout the year.
Last week’s labour force survey showed the total number of jobs in the economy went backwards for the second month in a row, and 53,000 full-time jobs were lost in September alone.
There are also 1.1 million Australians who are unemployed or can’t find enough work, marking the highest level since records began in 1978.
With a jobs record like this, it’s little wonder consumer confidence is so shaky under the Turnbull Government.
It’s time this Government stops fighting among itself and focuses on a real plan for confidence, growth and jobs. Slogans won’t cut it, and neither will a $50 billion free kick for big business and the banks.