Original article by Roy Morgan Research
Market Research Update – Page: Online : 10-Aug-16

This week’s fall in ANZ-Roy Morgan Consumer Confidence – down 3.3pts to 114.7 – follows a similar fall in Roy Morgan Business Confidence during July – down 3.4pts to 116.1. Both falls come as the new Turnbull Government deals with a closer than expected Federal Election result and a record 11 Senate cross-benchers. Although that might at first appear to be a huge problem for the Turnbull Government, the fact that most of the new cross-benchers in the Senate are right-of-centre should make dealing with the Senate easier during this term of Parliament than it was during the last term and it should be possible for the Government to pass its reforms with corporate tax cuts and the Australian Building & Construction Commission (ABCC) to increase workplace productivity. The RBA’s decision to cut interest rates to a record low 1.25% last week is a step in the right direction to stimulate the broader Australian economy; however, a further cut of 1% at the RBA’s next meeting is required to be competitive with international competitors including the US & UK and deal with the rising $A and slowing Australian economy after the end of the mining boom.

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