Consumers in Western Australia remain cautious, focusing more on saving and paying off debt rather than purchasing, a survey released today says.
The Curtin Business School-CCI Survey of Consumer Confidence showed 68 per cent of Western Australian respondents were looking to save more in 2012, while over half said reducing debt levels was a key issue.
The survey showed 22 per cent of consumers expected conditions to improve in the short term, down from 34 per cent at the same time last year.
CCI WA chief economist John Nicolaou said ongoing worries about the global economy and its impact on the WA market appeared to be affecting consumer behaviour, despite respondents believing buying conditions in the property market were favourable.
“While more respondents believed property buying conditions had improved this quarter, to the highest levels since September 2009, the continued cautious approach from consumers is likely to dampen any short-term recovery in the property market,” Mr Nocolaou said.
“Twelve month confidence in the economy continues to dive to post-GFC lows, with 23 per cent of consumers expecting the economy to worsen in the year ahead. “
Mr Nicolaou said consumers were spending more on utilities, groceries and transport compared to a year earlier, confirming pressures were being placed on family budgets.
