AARON MOREY
CCIWA CHIEF ECONOMIST
Western Australians are set to inject a further $650 million into the State economy before the end of 2021. CCIWA’s latest Consumer Confidence Survey shows nearly one-in-three Western Australians (29%) boosted their savings during COVID. WA households report intending to spend 32% of their stockpile by the end of the year, with the June survey featuring a special breakdown of how it will be spent.
Higher-income (47%) and older (53%) Western Australians are most likely to be planning a domestic holiday, while young people (18-39) were the most focused on their household bills (23%), rent (34%) and credit card debts (22%). Meanwhile WA’s lower income (50%) and regional households (45%) are the most likely to see additional spending on home improvement.
More broadly, consumer confidence in WA has held firm at decade highs, softening only marginally since last quarter. Four in ten (39%) Western Australians expect the economy to improve in the next three months, down three points. Expectations for the year ahead are brighter, with the majority (52%) of households anticipating a stronger economy into the first half of 2022, down eight points. The State Government’s success in containing the virus remains the biggest factor underpinning consumer confidence. Confidence in the national vaccine rollout also increased, with 47% of respondents saying domestic economic news had boosted their outlook. Concern about COVID-19 and the possibility of further lockdowns remained the clearest drag on confidence, though these fears declined again for a third consecutive quarter.
The survey also reveals WA households’ dependence on the mining sector. One in five (23%) report being reliant on the mining industry for their income, rising to 30% among younger Western Australians and 33% among higher-income households.
WA can take steps to mitigate the handful of factors holding confidence back. In the immediate term, WA must work with the Federal Government to prepare to welcome back international students and workers as soon as it safe to do so. It must also remain a priority to support the diversification of our economy, through lower payroll tax and by better promoting local investment opportunities to international investors.
