While consumer sentiment lifted slightly according to Westpac’s August survey, it is still in deeply negative territory.
This survey is reflective of the extremely difficult trading conditions facing many retailers in the discretionary spend sector. In more positive news, consumers felt confident about the job market, with the unemployment expectations index sitting just above the long-term average, and in positive territory. Consumers also appear to be less concerned about further interest rates rises, following the release of the June quarter CPI data.
CreditorWatch’s Business Risk Index (BRI) data for July indicates that areas in Australia that have highly mortgaged households and a lower average median age will also have businesses that are in the higher risk category for business failure.
Business failure rates across 87.2 per cent of regions in Australia are expected to increase over the next 12 months, highlighting the scale of the difficulty facing the economy, particularly those operating in the retail sector.
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Chief Economist, CreditorWatch
Anneke joined CreditorWatch as Chief Economist in April 2022. She is a specialist researcher and commentator on issues impacting the credit industry, SMEs and the broader economy, conducting regular presentations to corporate groups. She is also a media spokesperson for CreditorWatch, regularly appearing on national television and in syndicated media. Anneke is also the Managing Director of Clio Research and formerly the National Director and National Head of Research at Colliers International Australia. She has also worked at NAB and Jones Lang LaSalle.
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