Consumer confidence in the doldrums

money,stethoscope,coin,dollarThe Commonwealth Bank has launched a fresh call for the Federal Government to develop a long term plan to tackle the major economic threat posed by sagging confidence levels.

Australia’s biggest lender says volatility in the global economy, and in particular falling commodity prices, was undermining confidence levels among consumers and businesses.

In a letter to shareholders, the bank’s chairman, David Turner, and CEO, Ian Narev, said weak confidence was a significant economic threat and urged the Government to act.

“Businesses need the certainty to invest to create jobs, and households need a greater feeling of security,” they wrote.

“That requires implementation of a coherent long term plan that clearly addresses targeted government debt levels and time frames, infrastructure priorities, foreign investment, business competitiveness policies and job creation.”

Narev in February urged the Government to act to address sagging business confidence as he unveiled the bank’s record $4.6 billion first half profit.

He said that while the economy was fundamentally sound, the outlook was clouded by weak consumer and business confidence, which was hurting spending and investment.

Consumer confidence has been in the doldrums since May 2014 amid uncertainty around the Federal Government’s Budget policies.

The latest Westpac/Melbourne Institute consumer confidence index fell 1.2 per cent in March, while the National Australia Bank business confidence index fell to its lowest level in two years.



Comment Manually

I have read and agree to the Terms and Conditions and Privacy Policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Inside Retail Polls

Is the US-China trade war having an impact on your business?


#AlceonGroup announce first Victorian @Lego_Group store to open in @WestfieldAU Doncaster #retail

2 hours ago

Almost half of online marketplace @Kogan gross profit for FY19 came from its private label offering #retail #online

1 day ago

Talks of a merger between @OZretailers and @retailaustralia have come to a close, with the parties failing to align…

1 week ago

FREE NEWS BRIEFS Get breaking news delivered