Aussies sceptical about shopping sprees
Australians are being decidedly cautious with their credit cards at the checkout amid fears of a recession, new figures show.
In the third quarter of the year, total consumer spending grew just 0.1 per cent, a figure which Bloomberg notes is even worse than many analysts had feared.
Experts have put the seriously stunted sales growth down to a lack of confidence and hesitancy about making major purchases amid talk of an impending meltdown.
And it seems Aussies are apprehensive about all areas of spending, with household goods particularly hard hit.
So too, it appears many consumers would rather make their own brew than splash out at a cafe, as this sector also took a drubbing.
And reports indicate that they may well be right to be uncertain about their financial security, as figures show that home loan approvals have fallen for an eighth consecutive month.
Bloomberg claimed the new figures served to validate the Reserve’s decision to slash base rates in an attempt to stave off recession.
Since the latest cut, a host of new low-interest home loans have come on the market, which might fill consumers with a little joy in the run up to Christmas.