Uncertainty abroad is affecting financial confidence more than domestic factors, new research has revealed.
According to a survey by Loan Market Group, 56 per cent of Australians said the global economic situation was having the greatest impact on their confidence around making financial decisions.
Loan Market chief operating officer Dean Rushton said 34 per cent of the 468 respondents cited potential interest rate movements as their major concern.
He said six per cent of the people who took part in the online survey said the relatively low domestic unemployment rate was most influential while just four per cent were encouraged by Australia’s continuing resources boom.
“Uncertain global economic factors are obviously of concern to people despite assurances that Australia is faring much better than other western economies,” Mr Rushton said.
“This lack of confidence in the global environment, particularly the debt crisis in Europe and the United States, is hurting our domestic economy.
“The negative news about events overseas is undoubtedly influencing the majority of Australians and only 10 per cent of our respondents were influenced by positive factors such as the mining boom and the low jobless rate.”
Mr Rushton said the worrying international economic climate weighed heavier on Generation Y respondents with 60 per cent of that segment surveyed saying it was their major concern.