Generation Y are more anxious than the rest of the population over the direction of the global economy and the European debt crisis, a national survey by leading mortgage broker Priority Lending has found.
The Priority Lending poll which asked “What most influences your level of confidence around making financial decisions in 2012?’ found 74 per cent of Gen Y respondents cited the uncertain international economic outlook.
The Gen Y jitters over Europe were far greater than those for the total survey sample, with 61 per cent of the 763 respondents to the online poll saying the global economic situation was their major concern.
The potential this year for more interest rate cuts was also far less consequential for Gen Y respondents, with just six per cent saying it would influence their confidence compared to 19 per cent of the total poll.
Fifteen per cent of those polled said rising unemployment was a major consideration while five per cent said Australia’s resources boom was most influential.
Priority Lending Corporate Spokesman Paul Smith said the situation in Europe was continuing to weigh heavily on the confidence of Australians, particularly younger people.
“While it’s obviously a challenging situation in Europe, it’s a positive to see Gen-Y’s responsive and alert to the impact a Eurocrisis could have in Australia,” Mr Smith said.
Mr Smith said the Reserve Bank of Australia (RBA) had this month opted to keep official interest rates on hold at 4.25 per cent despite evidence that consumers still lack confidence.
“The volatile situation in Europe remains a major issue for many Australians, as interest rates and unemployment levels could move in conjunction a European recovery or further downturns,” he said.
“While the RBA acknowledges the fundamentals of the Australian economy are sound, consumer confidence is below par and that is definitely hurting sectors such as retail and building.”
“While the RBA has resisted the opportunity to lower the cash rate this month, there will most likely be more pressure to cut rates at their next meeting if the situation in Europe doesn’t improve and domestic confidence continues to wane.”
Priority Lending survey results:
What most influences your level of confidence around making financial decisions in 2012?
| GEN Y | TOTAL | |
|---|---|---|
| Uncertain global economy | 74% | 61% |
| Potential rate cuts | 6% | 19% |
| Australia’s resource boom | 9% | 5% |
| Unemployment rising | 11% | 15% |
Source: Priority Lending
