Although leadership tensions usually undermine support for that party and undermine confidence, last week’s leadership upheaval hasn’t negatively impacted on broader consumer confidence. The latest ANZ-Roy Morgan consumer confidence rating increased 2.4pts and followed interviews taken the day after Scott Morrison was sworn in as Australia’s 30th Prime Minister.
However, according to Roy Morgan CEO, Michele Levine, in contrast to the increase in consumer confidence that indicated a relaxed view of the broader economy, Australians are clearly concerned about the government’s performance. Confidence in the government plunged 6.5% following the leadership ructions with only 33.5% of Australians saying the country is ‘heading in the right direction’ and 49.5%, up 4.5%, saying Australia is ‘heading in the wrong direction’.
“It is a rare occurrence that consumer confidence and government confidence move in different directions however the leadership issues at the top of the government are a clear catalyst on this occasion. The fact Australians are able to separate what are expected to be short-term Federal Government leadership concerns from worries about the performance of the broader Australian economy should provide comfort to businesses, and in particular retailers, heading towards the important Christmas retailing season over the next few months,” she said.
“Although the past week has undoubtedly cost the new Morrison-led government support in the short-term the good news for the new government is that Australians already appear to be shaking off any concerns about Federal Government leadership woes.”