Australians are more worried now about the state of the economy than they were during the depths of the GFC.
Research from RFi shows people are being particularly cautious when it comes to borrowing, with many preferring to save their money instead.
“What is interesting to note is that many Australians are choosing to save for no particular reason. They have no savings goal. They just want to save in a bid to help them feel more comfortable about the future,” RFi director Alan Shields told Smart Property Investment.
According to Mr Shields, prolonged interest rate stability is having a negative impact on consumer confidence.
“We are at a place now where the RBA has not moved for the best part of a year and that makes people nervous – it creates uncertainty.”
In addition, the constant negative news stories spilling out of the United States of America and Europe are adding to growing buyer pessimism.