Confidence in Western Australia has fallen below COVID-19 levels, a CCIWA snap survey revealed, raising concern for business and the economy.
Of the more than 1,000 WA households surveyed, 82% plan to reduce discretionary spending in at least one category in the next six months.
CCIWA CEO Will Golsby said the results sent a worrying sign to WA businesses.
“This represents another challenge for WA businesses, who are being directly hit by the increase in their own fuel prices and operating costs, and will also feel the impact of weakening demand and lower consumer spending,” he said.
“To see consumer confidence drop to lower levels than COVID will be alarming for many businesses, but we saw during that crisis that businesses were resilient and able to adapt, with appropriate support from Government.
“We urge all levels of Government – Federal, State and local councils – to look at what fees, charges and taxes could be reduced or suspended during this crisis.”
These results follow CCIWA’s snap business confidence survey last week, which also produced sobering results.
How households plan to weather costs
The survey revealed how quickly rising costs had started to impact Western Australians:
- 31% have cancelled or significantly changed their Easter travel plans
- 25% would keep their Easter travel plans but spend less on food and activities
“It is really hard to get all the needs for a family of five on one income,” a respondent said.
Most people were broadly supportive of robust measures to ensure fuel supplies are maintained:
- 67% would support purchase limits on fuel if shortages worsened
- 50% would increase public transport use
- 61% supported free or discounted public transport
“The cost of fuel is killing me. I would be better on the dole,” another respondent said.
Essential to keep businesses operating
CCIWA has welcomed recently announced support measures like the fuel excise cut and suspension of the Road User Charge and targeted assistance for small businesses and those in sectors critical to keeping supply chains operating.
But CCIWA Chief Economist Dr Daniel Kiely said other measures to help business should be on the table.
“While supports to business will have budgetary implications, the cost of taking no action would have a greater impact on businesses, employment and the economy over the longer term,” he said.
“We don’t know how long this conflict will continue so it’s vital every measure is on the table to keep businesses operating, employing WA workers and driving the economy.
“We’re also continuing to monitor fuel supply challenges in regional WA, as well as the impact of fertiliser shortages on the agricultural sector as seeding season gets underway.”
CCIWA is monitoring the fuel situation and business impacts closely. Our new crisis hub is now live to keep businesses informed of the resources, advice and support available from CCIWA.
Become a CCIWA Member to ensure your voice is heard and that you receive the latest updates. Contact us via [email protected] or on 1300 422 492.
