The Global Economic Crisis and impact on the Australian utilities consumer

Table of Contents

OVERVIEW

• CATALYST
• SUMMARY
• METHODOLOGY

HOW HAS THE ECONOMIC DOWNTURN AFFECTED AUSTRALIAN CONSUMERS?

• Faced by a recession, consumer confidence has dwindled, but Australians remain positive
  • Australians believe their country is in a recession
  • Lower consumer confidence is driving Australian consumers to reappraise their consumption habits
  • The economic downturn has, however, not had a tangible impact on the lifestyles of the majority of Australian consumers
  • Australians are generally content with their quality of life despite being divided about the country' s overall direction

AUSTRALIANS ARE RE-EVALUATING THEIR SPENDING PATTERNS AND BECOMING MORE PRICE CONSCIOUS

• Amid the current economic fragility, many consumers are facing escalating levels of debt, financial uncertainty, wealth investment uncertainty, job insecurity and insecurities about the broader economic situation.
  • Consumers are managing their finances more closely with one quarter struggling to pay bills
  • Australians are making greater efforts to save money
  • Australian consumers have become increasingly price conscious following the global economic downturn
  • Consumers are being attracted by opportunities to get more value for money
• Summary

APPENDIX

• Definitions
• Sources
• Further reading
  • Reports and briefs
  • Recession & Recovery website
• Ask the analyst

TABLES

• Table: Consumer survey: level of satisfaction with "the general direction of how things are going" and "quality of life", in Australia (compared with the global average), 2009
• Table: Few Australian consumers report problems paying their utility bills

FIGURES

• Figure: More than two-thirds of Australian consumers believe the country is in recession but a relatively small proportion of these ' strongly agree'
• Figure: One-in-four Australian consumers feels that their lifestyle has not changed in light of the downturn
• Figure: Australian consumers are divided about the direction their country is taking but this has not significantly impacted their perceptions on quality of life
• Figure: Australian consumers are managing their finances more closely while a quarter of individuals report difficulties in paying all the bills
• Figure: Few Australian consumers report problems paying their utility bills
• Figure: Australians are generally reluctant to sustain their reliance on credit and express an increasing desire to save money
• Figure: The global financial crisis has had a moderate impact on households' desires to reduce their energy consumption and costs
• Figure: Customer churn increased as the Australian economy weakened
• Figure: The majority of Australians feel their utility suppliers offer a competitively-priced service relative to others in the market, and are unlikely to seek a cheaper supplier in the next 12 months
• Figure: Consumers are almost twice as likely to seek a cheaper supplier is they feel their power supplier is not offering a competitively-priced service
• Figure: How have consumers looked to save money on their energy bills?
• Figure: Datamonitor' s Recession and Recovery portal will allow industry players to identify emerging opportunities and track events in the Australian economy as they develop