Consumer confidence stabilises to average levels, but 2 million Aussies are at risk of credit card default
Article by Mary Ward
Consumer confidence rose 0.7% in the week ending September 28, according to Roy Morgan. However, credit reporting authority Veda has warned that 2.1 million Australians are at risk of credit card default.
The ANZ-Roy Morgan Consumer Confidence Rating showed the average consumer confidence over the past four weeks has been equivalent to the average figure since 1990; a healthy 112.8.
The stable figure comes after an incredibly volatile six months for Australian consumer confidence. The year’s lowest rating (99.3) was recorded in May, shortly after the release of the 2014/2015 federal budget. Although a much higher rating of 116.2 was recorded just weeks later at the end of July.
“ANZ-Roy Morgan Consumer Confidence has stabilised over recent weeks and remains consistent with our view that household spending will grow moderately this year,” ANZ chief economist Warren Hogan said.
“The trajectory of consumer confidence remains key for the recovery in consumer spending which in turn will be supported by gains in household wealth on the one hand but constrained by subdued household income growth on the other hand.”
Although, it is not all good news. The data released in the Veda Australia Credit Scorecard for this month has hinted that Australians might be over-confident in their respective financial situations, with over two million Australians are at risk of credit default in the next year.
Queensland has the highest proportion of residents at risk (16%) while the ACT has the smallest (10%).
The additional data released today by Veda also revealed that Australian women are more confident in their financial behaviour than their male counterparts (with 66% of women expressing confidence compared to 58% of men), and that 3% of Australians have lied on a credit application.
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