For the first time in almost a year, Australian consumers are spending less by 3.9 per cent, in what may be a sign that consecutive interest rate hikes are finally taking a toll.

This drop in consumer confidence comes at a time when interest rates are rising across the country. As rates rise, it becomes more expensive for people to borrow money for large purchases like cars or homes. This can lead to fewer people making these big-ticket purchases, which can have a ripple effect on other parts of the economy as well.

It’s important for governments and businesses alike to take note of this decrease in consumer confidence and adjust their policies accordingly. By taking steps to reduce interest rates or provide incentives for people to make large purchases, they can help stimulate the economy and get people back on track with their spending habits.

Overall, it’s clear that consumer confidence is taking a hit due to rising interest rates and economic uncertainty. It’s up to governments and businesses alike to take steps to ensure that people feel confident enough to make large purchases again so that the economy can continue growing.