Business confidence rises with strong profits, but consumers are getting more pessimistic

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Business confidence has risen, but consumer confidence is still deteriorating and economists warn it could be a sign of things to come.

"Their confidence fell by 8.9 per cent compared to modest moves from tenants and those owners who do not have a mortgage ," he said.

Curiously, economists say households are still spending as though they're confident about the future and it's complicating the economic outlook, but they didn't expect that divergence to last."The combination of higher inflation, aggressive interest rate hikes and falling home prices together have contributed to very low levels of sentiment.Where to from here?

"On one hand, we have seen consumer sentiment decline to very low levels that are consistent with major economic disruptions," he said.

 

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Pretty clear what the economy needs.... Encouraging competition.

That's because 'strong profits' don't help consumers one little bit and we've woken up to that fact.

Business has more profit? 😂😂 right

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