Households in Western Australia were already feeling the pinch from rising costs and interest rates before the Gulf conflict broke out, CCIWA’s Consumer Confidence Survey has revealed.
CCIWA’s quarterly survey of 836 WA households, conducted in Mid-February before the conflict started, found consumer confidence levels had slumped to their lowest level since March 2023.
Just over a quarter of households (28%) were expecting economic conditions to worsen, up six percentage points from the December quarter.
Living costs were identified as the biggest drag on confidence, identified by more than seven in ten (72%) WA households.
CCIWA’s Chief Economist, Dr Daniel Kiely, said it was likely consumer sentiment would be impacted significantly by the Middle East crisis.
“Since we conducted the survey in February, we’ve seen another interest rate rise, and of course the skyrocketing of petrol prices,” he said.
“The hit to household budgets will be significant and comes at a time when many Western Australians were already feeling the pinch.”
The survey also asked households how their spending habits would change in the coming six months.
Just over half (54%) said they would cut back on spending at cafes, restaurants and consumer goods.
“Households were already showing caution around spending so we can expect consumers to tighten their spending even further as a result of fuel prices,” Dr Kiely said.
The survey also found almost two-thirds (65%) of households supported extended Sunday trading across WA.
“There’s widespread support for shops being allowed to open at 9am on a Sunday and this comes through again and again in our surveys,” Dr Kiely said.
“You only need to go to any supermarket in Perth at 10.45 on a Sunday morning to see people waiting for the doors to open to buy essentials.
“Consumers have so much choice now and can shop online at any time. It’s vital that we support small and family businesses in bricks and mortar shopping precincts by giving them the flexibility to open before 11am on a Sunday.”
