Consumer confidence at six year low

The Herald reports:

Whether you believe this Government is to blame for the downturn, or that it is the victim of a political backlash, news that consumer confidence slumped to six-year lows in September is cause for concern.

The Westpac McDermott Miller Consumer Confidence Index released yesterday showed consumers are following the gloomy lead set by business owners this year.

Households are increasingly concerned about their financial prospects for the next 12 months.

The economists who conduct the survey say it is not clear whether this reflects the reality of a slowing economy or whether consumers are simply reacting to the highly publicised negativity of the business community.

Certainly factors such as the cooling housing market and rising fuel prices seem to be playing a part.

What is interesting is that the Government’s increase to WFF and benefits should mean consumer confidence is very high, as many households have had an income boost.

The fact it is at a six year low just after the increase in welfare payments is a concern.