Consumer confidence in Australia has fallen to its lowest level since the 2020’s COVID-19 pandemic, with the ongoing Iran conflict triggering fresh fears over inflation, fuel prices and economic uncertainty.
New data released by Ipsos Australia shows Australians are increasingly worried about the rising cost of living as global tensions continue to disrupt energy markets and supply chains.
Daily jumped 33 per cent amid instability in the Middle East and disruptions linked to the Iran conflict.
Australia Country Manager at Ipsos, Simon Wake, said Australians were increasingly tightening household budgets and looking for ways to reduce energy costs.
“The Iran conflict has delivered yet another inflationary shock — fuel prices are up 33%, inflation has hit 4.6%, and consumer confidence has plunged,” he said.
“Australians are tightening budgets and looking for sanctuary from the rising cost of energy, turning to hybrids, electric vehicles, and solar homes.”
The report also points to a shift in geopolitical perceptions among Australians, with trust in the United States declining sharply over the past six months.
Only 33 per cent of Australians now view the US positively, while more Australians believe China will have a positive impact on the world over the next decade than the United States.
Ipsos APEC CEO Hamish Munro said businesses across the region were now facing a rapidly changing environment shaped by shifting global alliances and consumer uncertainty.
“With trust in ‘brand America’ weakening and Asian brands now gaining momentum, businesses need a total understanding of local expectations to stay relevant,” he said.
Globally, Ipsos found consumer confidence had declined sharply across Asia-Pacific nations as the US-Iran conflict entered its third month, with countries including Thailand, Malaysia, South Korea, Japan and Australia recording some of the largest drops in sentiment.
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