By Amy Looker
Australians are losing confidence in the economy due to rising interest rates, escalating debt levels, increasing utility costs, and economic uncertainty which is impacting on purchasing behaviour.
This was the conclusion drawn by the latest Nielsen Global Online Consumer Survey, which revealed that an increase in the cost of utility bills was of greatest concern to consumers, closely followed by the economy.
More than half of Australian consumers also confirmed they are actively cutting down on takeaway meals, out-of-home entertainment and new clothes, as well as switching to cheaper grocery brands to reduce their household expenditure.
“With the continued rise in interest rates, increasing utility bills, escalating household debt, and general economic uncertainty in the lead up to the Federal election over the next few weeks – it is clear that the average Aussie consumer still faces some pretty tough financial challenges. Finding value will continue to be a key a part of how they make purchasing decisions,” said Chris Percy, managing director – Pacific, Nielsen Consumer Group.
“The key to success in the retail sector lies in responding to the needs of the shopper of today and the future, and not just in terms of offering a greater value proposition. The Australian population is set to embark on some major demographic shifts over the next few decades with significant changes in cultural diversity, an ageing population and general population growth.”
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