New data shows consumer confidence has collapsed to its lowest level in more than four years and remains well below its long run average.
The Westpac-Melbourne Institute Index of Consumer Sentiment fell 5.5 per cent in October to be down 8.6 per cent compared to one year ago.
Consumer expectations for the economy recorded significant falls. The sub-index for economic conditions over the next 12 months plunged 6 per cent to be down 15.1 per cent over the year.
The report highlights home-grown economic challenges including historically stagnant wages growth and the lack of fiscal policy response to the deteriorating outlook.
It specifically points to the “realisation amongst Australians that wages growth is likely to remain ‘stuck’ at a modest 2%yr or less for the foreseeable future.”
This report makes a mockery of Scott Morrison and Josh Frydenberg’s comments that Government has the right policy settings.
Weak economic growth is the inevitable consequence of a Liberal Government with a political strategy but not an economic plan.
Right when Australians need and expect a plan from the Morrison Government to get the economy going again all they get instead is finger-pointing, blame-shifting and wedge politics.
It is time Josh Frydenberg and Scott Morrison brought forward a budget update to fix their forecasts and properly outline an economic plan that supports the floundering economy and better safeguards it from global risks.
WEDNESDAY, 9 OCTOBER 2019