Income growth perceptions continued on a downward trajectory, hitting 2.9 per cent, the lowest mark since July 2021. Moreover, consumers’ perspectives on the present and forthcoming credit conditions both experienced a downturn, reflecting a bleaker financial outlook for many.
Uncertainty surrounding future inflation outcomes remained stable at the one-year-ahead horizon, while showcasing a decline at the three and five-year-ahead horizons, a subtle indication of a somewhat steadying economic foresight, as per the survey.
Delving into the labour market, the statistics showed nuanced alterations. The median one-year-ahead expected earnings growth saw a modest rise of 0.1 percentage point, reaching 2.9 per cent in August, maintaining the trajectory that has been prevalent since September 2021, fluctuating narrowly between 2.8 and 3 per cent.
The mean unemployment expectations noted an augmentation, with an increase of 1.8 percentage points, settling at 38.5 per cent, albeit staying below its 12-month trailing average of 40.2 per cent. This coupled with a spiked perceived probability of job loss in the upcoming year, which surged by 2 percentage points to 13.8 per cent, marking the highest figure since April 2021. Additionally, there was an increase in the perceived probability of voluntarily leaving a job within the next 12 months, escalating by 1.9 percentage points to 18.9 per cent.
The perceived probability of securing a new job if one were to lose their current one exhibited a marginal decline by 0.1 percentage point, hovering at 55.7 per cent.
ALCHEMPro News Desk (DP)
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