15 September 2008

MyState Financial’s Quarter 3 Tasmanian Economic Index shows Tasmanians are concerned about the future prosperity of the Tasmanian Economy, and they continue to have concerns about their personal financial situation.

MyState Financial’s Chief Executive Chris Brooks, said only 7% of Tasmanians are strongly confident in the State’s current economic situation, while more than one in three (35%) Tasmanians lack confidence in the future prosperity of Tasmania.

"While the Tasmanian economy has shown continuing strength up to now, there are clear indications that the Tasmanian people believe that the state will not maintain this strong position," he said.

Despite this negative outlook on the future of the Tasmanian economy, Tasmanians’ appetite for buying household appliances improved over the last quarter.

"More Tasmanians believe now is a good time to buy major household appliances than three months ago – up from 9% to 16%.

"Tasmanians’ view on the property market was also pleasing with less people disinclined to buy property – 53 per cent in the third quarter as compared to 58 per cent in the second.

"Given the recent down turn in finance approvals, this is a pleasing indication from the Tasmanian population that there is growing confidence returning to the property market."

In relation to their personal situation, Mr Brooks indicated Tasmanians were feeling less confident about their finances than last quarter.

"Tasmanians’ confidence in their personal financial situation fell over the past three months with the Personal Financial situation Index showing only 34% of Tasmanians were confident that their current income was sufficient to live on compared to 38% three months ago." Mr Brooks said

"Interestingly, Tasmanians living on the North West Coast are showing higher confidence levels than those living elsewhere. This reflects a definite shift from the Quarter 2 results, where people living in Southern Tasmania were more confident."

"Confidence in investment returns also fell significantly, with 31% of Tasmanians exceedingly uncertain compared to the Quarter 2 confidence level of 22%.

Mr Brooks said the Tasmanian Economic Index’s Headline Index remained constant at 50.7 out of 100 in Quarter 3 as compared to 50.8 in the previous quarter.

"Despite this stability in the overall Index, we are seeing substantial shifts in the Factor Indexes."

"National and international economic change will influence how people are feeling about their personal financial situation and the State’s economy, and this is what we are seeing in this quarter’s results.

"As we continue to conduct this research for Tasmania, we will be looking for anticipated seasonal trends in the results, but also shifts occurring as the State, National and International economies change."

The MyState Financial Tasmanian Economic Index is comprised of a Headline Index, which is drawn from the following Four Factor Indexes, each weighted to reflect the number of questions:

• Personal Financial Situation Index
• Personal Financial Worry Index
• Tasmanian Economic Condition Index
• Good Time to Buy Index

• MyState Financial Tasmanian Economic Index