Local Shoppers to Cut Back on Expenses

A study from the Boston Consulting Group (BCG) revealed that Aussie shoppers are worried about their financial standing and many are considering cutting back on their expenses. 

The report also said Aussies are the most worried consumers in the world. James Goth said they are on “crisis mode.” Goth heads the BCG’s consumer practice. 

According to Goth, Aussies are even more cautious than Americans and the British. Even though the financial crisis happening in Europe is half a world away, this hasn’t stopped Aussies from feeling very worried. 

Goth also said the concerns of Aussie consumers are much higher today than in 2011. 

The concerns are further aggravated with the announcement that the Reserve Bank has cut the interest rates by 50 basis points. This is the RBA’s way of helping the economy recover. 

The consumer sentiment study by the Boston Consulting Group has been conducted the last 11 years. This year’s survey was implemented last month, covering more than 15,000 consumers from 16 countries. 

About 1,400 Aussies participated in this survey. This is also the first time Australia participated in the global survey. 

Aside from economic worries, Aussies are also worried about their personal finances. 

According to Goth, close to half of Aussies (47 percent) believe they are not financially stable. Job security is the primary reason why Aussies don’t feel confident of their financial standing. The United States also posted the same percentage while the UK is at 45 percent. 

And because of worries on job security, Aussies are forced to cut back on discretionary expenses.