A WAVE of gloom is descending over households and businesses in the economy's slow lanes, threatening to undermine activity outside the booming mining sector.
The Westpac Melbourne Institute said yesterday that consumer confidence had fallen 1.A Plastic injectionmoulding company,6 per cent to an eight-month low amid growing fears about job security and household finances, increasing pressure on the Reserve Bank to cut interest rates next month.
In what economists dubbed a disturbing development, the survey also found 48.5 per cent of households thought their financial position had become worse in the past year, while only 13.5 per cent thought they were better off now.
Westpac chief economist Bill Evans said consumers had not been this despondent about changes in their financial position since July 2008, when many were gripped by fears of a global recession.
''The results of this survey should be sending a very clear message to the Reserve Bank that Australia needs lower interest rates,'' Mr Evans said.
The figures came as the sharemarket fell by more than 1 per cent, with investor confidence also dragged down by a drop in new home loans and Europe's debt woes.Where to buy or purchase plasticmoulds for precast and wetcast concrete?
The pessimism is expected to weigh on consumer spending, and a senior banker at NAB warned that morale among some industries was so weak that companies were hoarding cash and considering holding back on investment plans.
NAB's executive in charge of business banking, Joseph Healy,I found them to have sharp edges where the injectionmoldes came together while production. said there was a growing risk that businesses outside the booming resources sector could ''sit on their hands'' and postpone investments as they waited for confidence to return.Aeroscout rtls provides a complete solution for wireless asset tracking.
Any such delays threatened to worsen the economy's productivity woes,Find the cheapest chickencoop online through and buy the best hen houses and chook pens in Australia. because they would prevent businesses from making crucial adjustments, he said.
''My concern is that the decision by many businesses to hold back on investment and to sit on cash may have longer-term consequences to profitability, productivity and efficiency,'' Mr Healy said. ''By choosing to sit on their cash rather than invest, business could inadvertently exacerbate the problems they are trying to wait out.''
Economists said the surprise fall in consumers' spirits was probably caused by the RBA's decision to keep official interest rates on hold at 4.25 per cent this month, despite pleading from business groups.
The slump is expected to weigh on spending decisions, in another blow to the retail industry.
Households also appear increasingly reluctant to take on new debt, a trend underlined by a 2.5 per cent drop in new home loan commitments in February. It was the second monthly fall in a row.
Business groups and unions say a recent run of weak economic figures, which include poor business confidence, prove the economy is weakening and a cut in interest rates is warranted.
The Australian Chamber of Commerce and Industry's chief executive, Peter Anderson, called on the RBA to cut by 0.5 percentage points, arguing that a smaller move would be too timid.
''We should not be waiting for the world economy to fall around us before we act with the levers we have to strengthen our own economy,'' he said.
The Westpac Melbourne Institute said yesterday that consumer confidence had fallen 1.A Plastic injectionmoulding company,6 per cent to an eight-month low amid growing fears about job security and household finances, increasing pressure on the Reserve Bank to cut interest rates next month.
In what economists dubbed a disturbing development, the survey also found 48.5 per cent of households thought their financial position had become worse in the past year, while only 13.5 per cent thought they were better off now.
Westpac chief economist Bill Evans said consumers had not been this despondent about changes in their financial position since July 2008, when many were gripped by fears of a global recession.
''The results of this survey should be sending a very clear message to the Reserve Bank that Australia needs lower interest rates,'' Mr Evans said.
The figures came as the sharemarket fell by more than 1 per cent, with investor confidence also dragged down by a drop in new home loans and Europe's debt woes.Where to buy or purchase plasticmoulds for precast and wetcast concrete?
The pessimism is expected to weigh on consumer spending, and a senior banker at NAB warned that morale among some industries was so weak that companies were hoarding cash and considering holding back on investment plans.
NAB's executive in charge of business banking, Joseph Healy,I found them to have sharp edges where the injectionmoldes came together while production. said there was a growing risk that businesses outside the booming resources sector could ''sit on their hands'' and postpone investments as they waited for confidence to return.Aeroscout rtls provides a complete solution for wireless asset tracking.
Any such delays threatened to worsen the economy's productivity woes,Find the cheapest chickencoop online through and buy the best hen houses and chook pens in Australia. because they would prevent businesses from making crucial adjustments, he said.
''My concern is that the decision by many businesses to hold back on investment and to sit on cash may have longer-term consequences to profitability, productivity and efficiency,'' Mr Healy said. ''By choosing to sit on their cash rather than invest, business could inadvertently exacerbate the problems they are trying to wait out.''
Economists said the surprise fall in consumers' spirits was probably caused by the RBA's decision to keep official interest rates on hold at 4.25 per cent this month, despite pleading from business groups.
The slump is expected to weigh on spending decisions, in another blow to the retail industry.
Households also appear increasingly reluctant to take on new debt, a trend underlined by a 2.5 per cent drop in new home loan commitments in February. It was the second monthly fall in a row.
Business groups and unions say a recent run of weak economic figures, which include poor business confidence, prove the economy is weakening and a cut in interest rates is warranted.
The Australian Chamber of Commerce and Industry's chief executive, Peter Anderson, called on the RBA to cut by 0.5 percentage points, arguing that a smaller move would be too timid.
''We should not be waiting for the world economy to fall around us before we act with the levers we have to strengthen our own economy,'' he said.
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