Australian consumers’ confidence in their financial wellbeing is on shaky ground, according to the Suncorp Life Confidence Index. The survey found that overall financial confidence has dropped 1.5 points from 60.9 in April 2010 to 59.4 in August 2010 with young families, blue collar workers, single males and females and empty nesters all concerned about their financial wellbeing.
The two mining states, Western Australia and Queensland, posted the least confident results the survey said. The confidence levels of respondents from Western Australia has taken the biggest hit falling 2.8 points since April, while Queenslanders remain the least confident of all Australians with an index score of 58.1 in August.
Confidence also fell 2.4 points in New South Wales during the three months between April and August 2010, with those residing in the state showing the least confidence in their knowledge of financial products and services. In contrast, Victorians responding to the survey had the highest ratio of household debt to income in Australia with the average household holding $330 of debt for every $100 of income.
Six main factors were cited by as influencing consumers’ financial confidence, Suncorp said. They included the ability to manage anticipated increases in the cost of living particularly in light of stagnant salary levels; having a savings buffer to cover periods of unemployment; financial know-how; financial control; sufficient superannuation to fund retirement and debt to income ratio.
The biggest influence on financial confidence was the ability to manage an increase in the cost of living, with one in four Australians citing this as a major concern. Negative feelings surrounding a change in federal government, employment security and the impact of overseas issues on the Australian economy were also contributing factors to low confidence levels.
