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Australian Consumer Confidence Up As Petrol Prices Fall - Up 7.2 Points to 115.8

Article No. 567 - October 06, 2006

The Roy Morgan Consumer Confidence Rating was up 7.2 points in October to 115.8 — the second consecutive rise since the low point in August following the second interest rate rise in 2006.

This month’s rating of 115.8 is 9.4 points above the October average of 106.4 and 0.3 points below the 2006 average of 116.1.

The main driver behind the increase was the short-term expectations of the Australian economy — expectations of good economic conditions in Australia over the coming year were up 4% to 38%, while 26% (down 6%) expect bad economic conditions over the coming year.

One-in-two (50%, up 5%) of Australians consider now a good time to buy major household items, whilst 19% (down 4%) say it is a bad time.

The number of Australians expecting good economic times over the next five years is up 2% to 32% compared to 24% (down 4%) of Australians who expect bad economic times over the next five years.

Looking ahead, 39% (up 1%) expect to be better off financially this time next year, while 16% (down 5%) expect to be worse off.

Currently, 32% (unchanged) say their personal financial situation is better now than it was last year, while 27% (down 5%) say they are now worse off.

Gary Morgan says:

“The Roy Morgan Consumer Confidence rating rebounded strongly for the second month in a row, up 7.2 points to 115.8 — roughly the same level it was at before the second interest rate rise of 2006 sent it plummeting in early August.

“If interest rates are not increased and petrol prices stay at current day prices, consumer confidence should remain buoyant in the lead up to Christmas.”

This Roy Morgan Consumer Confidence Rating is based on 1,069 face-to-face interviews conducted Australia-wide with men and women aged 14 and over on the weekend of September 30/October 1.

 

For further information:

Gary Morgan

Office (03) 9224 5213

Mobile 0411 129 094

Home (03) 9419 3242

Michele Levine

Office (03) 9224 5215

Mobile 0411 129 093

Home (03) 9817 3066

Monthly Roy Morgan Consumer Confidence Rating Figures

Year

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Yearly
Average

1973

 

 

119.2

 

 

117.0

 

 

108.4

 

 

103.8

112.1

1974

 

 

103.2

 

 

95.6

 

 

90.6

 

 

92.2

95.4

1975

 

 

114.0

 

 

104.2

 

 

100.8

 

 

103.0

105.5

1976

113.6

 

107.0

110.2

 

107.0

105.6

 

108.0

108.8

101.2

 

107.7

1977

104.2

 

98.6

101.6

 

103.8

99.4

 

105.0

104.4

109.4

 

103.3

1978

119.2

 

114.8

110.8

 

109.6

101.6

 

91.2

104.4

103.6

 

106.9

1979

110.2

 

106.2

109.4

 

92.6

90.2

 

99.4

97.6

98.8

 

100.6

1980

98.8

 

100.8

97.4

 

101.6

98.2

 

104.4

109.8

106.4

 

102.2

1981

113.4

 

111.8

101.8

 

100.8

95.0

 

92.4

98.2

98.0

 

101.4

1982

92.4

 

91.8

93.6

 

92.2

80.4

 

84.6

81.2

75.2

 

86.4

1983

87.8

 

97.4

96.0

 

95.4

98.2

 

100.6

106.4

113.2

 

99.4

1984

124.6

 

120.8

120.8

 

115.6

116.6

 

118.2

117.8

114.6

 

118.6

1985

114.8

 

110.2

99.4

 

98.0

100.8

 

106.8

107.8

94.8

 

104.1

1986

105.4

 

103.8

94.6

94.8

91.6

79.8

79.8

78.8

89.8

85.6

88.8

90.3

1987

90.4

88.0

86.8

90.8

91.8

93.4

98.6

96.4

94.8

104.0

87.2

93.0

92.9

1988

100.4

98.8

103.6

106.2

104.0

104.0

107.6

108.2

112.4

108.8

104.2

105.8

105.3

1989

105.0

94.6

88.4

88.4

87.4

72.8

73.0

78.8

82.0

79.0

81.0

80.0

84.2

1990

101.6

95.6

83.4

88.3

84.7

83.1

79.6

83.9

75.6

71.4

73.1

71.3

82.6

1991

78.5

85.4

85.0

87.2

87.7

88.6

98.1

95.2

93.3

95.8

91.1

83.0

89.1

1992

93.6

95.9

96.2

105.4

101.6

97.7

95.4

96.9

96.8

101.2

93.6

92.9

97.3

1993

100.8

100.4

105.9

102.3

102.2

96.2

96.6

100.8

90.2

103.5

111.9

108.5

101.6

1994

120.5

127.5

125.7

127.7

125.2

128.0

127.6

123.8

123.6

124.6

118.1

118.0

124.2

1995

112.3

112.4

113.9

114.7

112.0

112.4

110.2

115.5

111.7

116.2

114.3

111.9

113.1

1996

116.7

119.1

123.7

121.5

118.8

117.8

112.3

114.4

113.2

111.3

113.4

113.2

116.3

1997

119.2

115.1

116.2

112.5

114.2

115.5

110.7

111.7

112.4

112.8

111.6

110.6

113.5

1998

117.8

116.0

114.9

110.2

114.4

109.8

107.6

111.1

111.0

113.9

114.2

114.7

112.8

1999

122.1

121.8

122.5

119.6

122.5

122.2

118.2

122.8

122.3

119.6

122.8

122.2

121.6

2000

122.3

119.9

112.9

116.6

112.0

108.7

114.8

119.1

115.8

115.6

110.3

112.3

115.0

2001

119.9

109.5

106.2

103.6

107.4

108.6

115.3

116.4

120.9*

106.8

109.4

113.3

111.4

2002

124.8

123.0

122.3

123.2

124.0

116.4

123.4

119.9

122.1

117.2

114.0

109.6

120.0

2003

122.5

113.4

109.9

120.8

127.0

122.4

123.2

122.4

123.2

121.2

124.2

120.4

120.9

2004 126.0 126.8 130.4 124.4 125.0 125.6 128.9 127.6 126 128.9 124.8 125.5 126.7
2005 133.2 132.0 121.5 119.4 119.5 118.8 116.8 120.6 114.3 105.4 110.6 117.7 119.2
2006 124.3

124.5

124.4 120.1 106.8 115.1 118.1 103.7^ 108.6 115.8     116.1

 

Monthly
Average

110.8

111

108.6

107.7

108.7

105.4

104.6

108.3

104.7

106.4

104.4

104.6

106.4

* The Roy Morgan Consumer Confidence Rating for September 15/16, 2001, conducted by telephone, was 102.3.

^ 84 of the 107 Western Australian interviews were conducted by telephone on August 9/10 due to a recent Southern WA Cyclone

Results for the Roy Morgan Consumer Confidence Rating*
for the component questions over the more recent surveys are as follows:

2005

Jan

Feb

Mar

Apr

May

June

July

Aug

Sep

Oct

Nov

Dec

Interviews

1,141 1,250 1,181 1,074 1,092 1,070 1,038 1,077 1,033 1,114 1,003 1,083

Q1 Would you say you and your family are better-off financially or worse off than you were at this time last year?

Over the past year

better off

36 36 35 32 34 32 31 36 32 32 31 34

 

worse off

21 21 24 26 28 24 30 27 30 32 30 27

QUESTION 1 difference

15 15 11 6 6 8 1 9 2 0 1 7

Q2 This time next year, do you and your family expect to be better-off financially or worse off than you are now?

 

better off

47 46 44 43 42 41 41 40 39 39 35 40

 

worse off

11 11 15 15 15 16 20 16 21 26 20 17

QUESTION 2 difference

36 35 29 28 27 25 21 24 18 13 15 23

Q3 Thinking of economic conditions in Australia as a whole. In the next 12 months, do you expect we'll
have good times financially, bad times or some good and some bad?

 

good times

52 50 39 38 36 35 35 42 36 28 32 41

 

bad times

14 15 23 26 24 25 27 23 28 39 32 23

QUESTION 3 difference

38 35 16 12 12 10 8 19 8 -11 - 18

Q4 Looking ahead, what would you say is more likely, that in Australia as a whole, we'll have continuous good times
during the next 5 years of so - or we'll have bad times - or some good and some bad?

 

good times

41 41 36 33 33 30 30 32 30 25 28 31

 

bad times

14 13 16 22 21 23 22 24 25 29 26 26

QUESTION 4 difference

27 28 20 11 12 7 8 8 5 -4 2 5

Q5 Generally, do you think now is a good time - or a bad time - for people to buy major household items?

 

good time to buy

61 58 50 53 55 55 61 57 52 50 53 53

 

bad time to buy

11 11 18 14 14 12 14 14 14 21 18 18

QUESTION 5 difference

50 47 32 39 41 43 47 43 38 29 35 35

 

Roy Morgan Consumer Confidence Rating

133.2 132.0 121.5 119.4 119.5 118.8 116.8 120.6 114.3 105.4 110.6 117.7

 

* The Roy Morgan Consumer Confidence Rating is 100.0 plus the simple unweighted average of the difference between the percentage of respondents who give a favourable and those who give unfavourable answers to five key questions.

 

 

Results for the Roy Morgan Consumer Confidence Rating*
for the component questions over the more recent surveys are as follows:

2006

Jan

Feb

Mar

Apr

May

June

July

Aug

Sep

Oct

Nov

Dec

Interviews

1,062 1,163 1,125 1,165 1,149 1,144 1,215 1,132 1,085 1,069    

Q1 Would you say you and your family are better-off financially or worse off than you were at this time last year?

Over the past year

better off

31 35 34 34 30 32 32 30 32 32    

 

worse off

26 25 25 27 35 30 31 34 32 27    

QUESTION 1 difference

5 10 9 7 -5 2 1 -4 0 5    

Q2 This time next year, do you and your family expect to be better-off financially or worse off than you are now?

 

better off

42 44 45 43 37 41 40 35 38 39    

 

worse off

14 14 14 16 22 19 19 26 21 16    

QUESTION 2 difference

28 30 31 27 15 22 21 9 17 23    

Q3 Thinking of economic conditions in Australia as a whole. In the next 12 months, do you expect we'll
have good times financially, bad times or some good and some bad?

 

good times

41 44 42 41 32 38 42 29 34 38    

 

bad times

21 21 20 25 34 26 25 38 32 26    

QUESTION 3 difference

20 23 22 16 -2 12 17 -9 2 12    

Q4 Looking ahead, what would you say is more likely, that in Australia as a whole, we'll have continuous good times
during the next 5 years of so - or we'll have bad times - or some good and some bad?

 

good times

36 35 34 34 30 29 33 29 30 32    

 

bad times

20 20 19 23 25 24 23 27 28 24    

QUESTION 4 difference

16 15 15 11 5 5 10 2 2 8    

Q5 Generally, do you think now is a good time - or a bad time - for people to buy major household items?

 

good time to buy

64 59 58 55 45 51 57 46 45 50    

 

bad time to buy

12 14 13 15 24 17 16 27 23 19    

QUESTION 5 difference

52 45 45 40 21 34 41 19 22 31    

 

Roy Morgan Consumer Confidence Rating

124.3 124.5 124.4 120.1 106.8 115.1 118.1 103.7 108.6 115.8    

 

* The Roy Morgan Consumer Confidence Rating is 100.0 plus the simple unweighted average of the difference between the percentage of respondents who give a favourable and those who give unfavourable answers to five key questions.

Roy Morgan Consumer Confidence Subscription Service


Subscription to the Roy Morgan Consumer Confidence Rating — Australia’s leading monthly indicator of Australia’s economic confidence — is available.

Subscription is available at three levels:

1. Press Release Service     Mailed: $375 (+ $37.50 GST)
                                         Total = $412.50

                                        Faxed: $500 (+ $50.00 GST)
                                          Total = $550.00

Each month, subscribers will receive a copy of the press release which includes the calculated Consumer Confidence Rating figure and the results to each of the individual Consumer Confidence questions.

Alternatively, the Roy Morgan Consumer Confidence Rating press releases are available on Roy Morgan Research’s Internet Website (www.roymorgan.com) free of charge.

2. Full Subscription (including geographic and demographic sub-group analysis):
                                         $13,125.00 (+ $1,312.50 GST)
                                          Total = $14,437.50

Full subscribers receive the Consumer Confidence press release, results of each of the individual Consumer Confidence questions, and a fully described laser printed computer report showing results within State, age and sex groups, occupation groups, the Roy Morgan Values Segments, etc.

The laser printed computer report is not available on Roy Morgan Research’s Internet Website.

3. Full Subscription (including one sub-group analysis):

                                          $2,862.50 (+ $286.25 GST)
                                           Total = $3,148.75

Subscribers to the one sub-group analysis service includes analysis of one specific sub-group (eg. state, region, sex, age, occupation, work status, etc., or the Roy Morgan Values Segments).

The one geographic or demographic sub-group analysis is not available on Roy Morgan Research’s Internet Website.


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