Consumer confidence still low despite rate drops

WA's peak business lobby group says low interest rates have done little to promote confidence in consumers.

The Chamber of Commerce and Industry's quarterly survey shows consumer confidence levels at their lowest since the global financial crisis.

The CCI's chief economist John Nicolau says a number of factors are driving the negative sentiment.

"Really the two big factors that are driving the declining confidence among consumers are global economic conditions but also rising costs of living," he said.

"Those two key factors are overwhelming any positive news that has come from the falls in interest rates on the part of consumers." However, Mr Nicolau is still predicting strong Christmas sales because people have been paying off debts and saving in recent years.

"That period of consolidation of their budget positions has provided greater capacity for consumers to spend and ultimately I think consumers are looking for some Christmas cheer and are reporting that they will spend more during this Christmas period," he said.

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