1 minute read
1. State ofthe Market
by aaaa710
Consumer Confidence Business Confidence Fuel Prices
Consumer confidence continued to fall through the first quarter of 2023 off the back of continuing economic uncertainty, rising inflation, and a level of concern around job security that is impacting consumer spending.
While Australia’s consumer confidence remains at the lows seen through the COVID pandemic and GFC, suggestions from the RBA that interest rates will steady in coming months will hopefully reduce some of the pressure.
Business confidence rose during the first quarter of 2023, however is still in negative territory (under the benchmark of 100). Key factors impacting this include increasing costs of production, ongoing supply chain disruptions, and (in some markets) reduced levels of consumer demand.
While we will potentially see more improvement in consumer confidence that can translate through to the business sector, the continuing uncertainty is impacting investment decisions, hiring plans, and overall business outlook.
Petrol prices declined slightly in the first quarter of 2023 but remain significantly above the historic average, continuing to put pressure on consumer and fleet budgets.
Ongoing global geopolitical uncertainty, along with the recent announcement from OPEC members of reduced production volumes mean that crude oil prices are unlikely to decline significantly in the short to medium term. Relief at the pump is likely still a while off.
