1. State of the Market

Consumer Confidence Business Confidence Fuel Prices

Australia’s consumer confidence saw a marginal increase in the second quarter of 2023, but remains weak off the back of continuing interest rate rises. Compared to historic performance, confidence remains significantly depressed, with current levels comparable to those seen during the COVID-19 pandemic.

Looking to the future however, there is a level of hope that we’re close to the peak in the interest rate rises, which should help rebuild confidence over the medium term.

Business confidence experienced a marked decline in the second quarter due to escalating production costs, persistent disruptions in supply chains, and decreased consumer demand in certain markets.

Despite stronger performance in some sectors, ongoing economic uncertainty is having an impact on investment decisions, hiring plans, and the overall business outlook.

Petrol prices remain considerably higher than the historical average, with a nominal change through the current quarter. This persistent elevation in pump prices continues to exert pressure on both consumer and fleet budgets.

Continued global geopolitical uncertainty, coupled with the reduced production volumes by OPEC members, suggests that crude oil prices are unlikely to significantly decrease soon. As a result, fuel prices are anticipated to remain elevated through the rest of this calendar year.