There have been significant changes in Australian consumer psychology in the past 12 months and these have broadened over the past four months to include non-economic issues.
Consumers have become more apprehensive about the future. Australian consumers seem to have developed a heightened sense of foreboding. How has it come to this and what does this mean for business and government?
This document provides evidence of these changes and provides some guidance on the future impacts. We will monitor the situation closely and continuously and provide clients with early warnings of change.
The report begins with a summary of the unprecedented changes that have occurred in recent years – which started before the pandemic. Then changes in consumer financial situations and concerns are described along with how they have reacted.
We then consider likely and possible changes in consumer behaviour in the future – including family formation. The implications for government and business decision makers are then discussed.
This report is based on proprietary tracking data to August 2023. It will be updated in November 2023.