Local consumers are becoming increasingly confident about an economic rebound in Western Australia in the year ahead, according to a new confidence survey.
Local consumers are becoming increasingly confident about an economic rebound in Western Australia in the year ahead, according to a new confidence survey.
In the September quarterly survey of consumer confidence by the Chamber of Commerce and Industry and the Curtin University Business School, 72 per cent of respondents believe the local economy will strengthen over the next 12 months.
Low income earners that were the most optimistic with 74 per cent believing the economy will pick up within the year.
Around six per cent of respondents believe that economic conditions will deteriorate in the next 12 months.
The survey, the second analysis carried out by CCI and Curtin, canvassed 403 Western Australians.
Around 34 per cent of respondents believe the WA economy will improve within the next three months, compared to seven per cent that expect conditions to decline.
This compares with the previous quarter's survey when 18 per cent of respondents expected economic conditions to pick up.
Middle income earners were the least optimistic int he latest survey, with 27 per cent believing the state's economy to improve in the next three months.
Meantime, the personal finances of respondents have remained weak the latest survey with around 29 per cent saying their financial situation is worse than a year ago, compared to 22 per cent that reported they were better off.
Older Western Australians were the most affected by the downturn with 33 per cent.
A person's ability to find work in the September quarter with 25 per cent of respondents saying their employment prospects are worse than a year ago, down from 30 per cent recorded in the June quarter survey.
Job prospects were weakest for younger respondents (34 per cent) and middle income earners (33 per cent).
The announcement is below:
The crisis of confidence that has tested the Western Australian economy for most of the year appears to be coming to an end, with the latest Curtin Business School-CCI Survey of Consumer Confidence revealing a growing number of local consumers are more upbeat about the future.
The latest quarterly survey, which is the State's first and only assessment of consumer sentiment, sought the views of more than 400 people across WA.
It found that consumer confidence is on the rise, with nearly three-quarters of those surveyed believing the WA economy will rebound in the year ahead. On the other hand, just six per cent believe economic conditions will deteriorate.
Respondents of all ages, locations and income levels are increasingly positive about the prospects for the WA economy. Low income earners are the most optimistic.
Consumers are growing in confidence about the short term prospects for the local economy. The number of people who believe the WA economy will recover in the next three months has nearly doubled.
CCI Chief Economist John Nicolaou said, "consumer attitudes are an important litmus test for the wellbeing of a local economy. These figures provide further encouragement that the worst of the global recession may be behind us, and the economy will soon return to the strong growth rates seen in recent years."
Consumer confidence has improved despite a large number of respondents reporting a further deterioration in their personal finances. Almost 30 per cent of those surveyed said their finances have taken a hit over the past year. This compares to 20 per cent who said they were better off.
Older Western Australians are among the worst affected, with around one in three saying that their personal finances have deteriorated over the past year.
Acting Pro-Vice Chancellor of the Curtin Business School, Professor Ian Kerr said, "there is no doubting that 2009 has been, and will remain, a difficult year for many Western Australians. It is encouraging that consumers are increasingly optimistic that improved economic conditions are just around the corner."
While 25 per cent of respondents believe that their employment prospects are worse than a year ago, this is an improvement on the previous quarter.
Consumers also believe that buying conditions for major household items and property are favourable. Nearly half of those surveyed believed that now is a good time to purchase major household items, compared to 14 per cent who described conditions as poor.
Consumers were even more optimistic about entering the property market, with almost half stating that they believe it is currently a good time to buy real estate.
The survey's feature question this quarter examined the need to reform the State's restrictive retail trading hours laws. Respondents were asked whether they would shop if retail trading hours in WA were extended on weeknights and Sundays, and the types of goods they would buy.
Bearing in mind that the survey covered WA as a whole, not just the Perth metropolitan area, sixty per cent of respondents said they would shop on Sundays, while just under half indicated they would take advantage of extended weeknight trading.
Younger adults were most supportive of extended trading hours, with nearly 70 per cent saying they would shop on Sundays, and more than half saying the same for weeknights.
For both weeknights and Sundays, consumers said they would most likely use the extra shopping hours to purchase groceries. Around 90 per cent of those who would shop on weeknights said they would purchase groceries, whereas 70 per cent would shop for groceries on Sundays.
The survey revealed that people would be more likely to shop for household goods and domestic items on a Sunday.
Almost half of those surveyed said they would shop for domestic appliances on Sundays, while a further 30 per cent would buy furniture and homewares. Twenty per cent of respondents said they would shop for domestic hardware and floor coverings.
