Speaking Sensis

The latest Sensis® Consumer Report found a second successive quarter of improvement in consumer confidence – report author Christena Singh tells us why now is the time to kick goals for your business.

The latest Sensis® Consumer Report found consumer confidence up again – increasing by 13 percentage points and building on the previous quarter’s increase of 18 percentage points.

But let’s step back a bit. Consumer confidence peaked at a net balance of 61 per cent in November 2007. At this time consumers were not showing signs of concern about economic conditions in Australia. There were a few rumblings happening overseas though at this stage, and we had already measured are largest fall to that time in business confidence. It would be almost another year before the collapse of Lehman Brothers.

Consumer confidence fell to its lowest point in February this year – a net balance of 21 per cent. Overall, consumer confidence fell some 40 percentage points. This quarter’s increase represents consumer confidence recovering over three-quarters of the amount that it lost. That recovery has taken place within the past six months. Playing fields can shift quickly…

Now, to move to a completely different tack, we also had a bit of a look at how sport affects Australian consumers – and as a great sporting nation it is not surprising that over three-quarters of Australian are sporting fans. Consumers that were sporting fans were more confidence than those that were not.

Around Australia, the Australian Cricket Team was the most nominated as the favourite team, but looking around the states and territories AFL teams were most likely to be named as favourite in most states.

Now, my allegiances as a Melbourne Demons supporter are well known, and I was a bit disappointed that we did not top the list, but my second team “whoever plays Collingwood” did better. While Collingwood topped the charts for teams in Victoria, if you take all other teams together, anyone but Collingwood comes on top…

But on the economic front, Team Australia has been kicking goals – our economic fundamentals are the envy of most developed economies, based on decades of economic reforms. Australia did not record a technical recession, our major financial institutions have remained strong and our unemployment levels have not even come close to predictions.

But for many businesses the playing field has felt a lot different in the past year, with consumer spending having been impacted in many sectors. Australian consumers are expecting the economy to continue growing over the next year, and their spending expectations are improving. Recognising that Australia is on the path to recovery and positioning your business to take advantage of the opportunities of growth will be an important step to making sure that your business keeps kicking goals in the next few years.

Australia’s top ten favourite sports:
1.    AFL (21 per cent)
2.    NRL (12 per cent)
3.    Cricket (11 per cent)
4.    Soccer (11 per cent)
5.    Tennis (nine per cent)
6.    Swimming (four per cent)
7.    Netball (four per cent)
8.    Motor sports (four per cent)
9.    Rugby Union (three per cent)
10.    Golf (three per cent)

Australia’s favourite teams:
1.    Australian Cricket Team
2.    Adelaide Crows
3.    Collingwood Magpies
4.    Brisbane Broncos
5.    West Coast Eagles
6.    Carlton Blues
7.    Essendon Bombers
8.    Sydney Swans
9.    Hawthorn Hawks
10.    Fremantle Dockers