There has been an abrupt shift in consumer psychology which has implications for government policy, the Reserve Bank, and business decision makers. Economic pessimism has increased and the level of belief in climate change has lifted.
These changes seem to be at odds with the federal government’s “sticking to our policy” mantra. The heightened expectation of a rise in unemployment is inconsistent with the Reserve Bank’s hope for a decline in the unemployment rate to 4.5%. Other shifts in consumer psychology are more positive and provide an opportunity to boost consumer spending growth.
The level of belief in imminent climate change in late 2019 is the second-highest recorded and is slightly higher than in 2007, when John Howard lost his seat in parliament and his government lost office.
This summary report provides the details and some implications for business decision makers, the federal government, and the Reserve Bank of Australia.