Confidence in the economy drops among Aussies

Consumer confidence in Australia dropped in the six months leading up to April 2011, according to the latest survey by MasterCard.

The credit card provider's study revealed that in this period, confidence fell to 63.1 points, down from 74.1 points in the preceding half a year.

Andrew Cartwright, MasterCard Australia country manager, noted that many Aussies are being more cautious with regards to their spending and saving habits.

"Households are keeping their wallets closed and are adopting a 'wait and see' approach, in particular keeping a close eye on Reserve Bank of Australia rate announcements, before making large-scale purchases," he told the Australian Associated Press.

He noted that there has also been a softening in the growth of credit card purchases, but that there is still growth with regards to debit cards as Aussies look to only spend what they have.

This comes after Tim Lawless, research director at RP Data, said many people are waiting for positive developments in the economy before they take out new home loans.

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