Australian consumer confidence has jumped to a 15-month high, according to the Sensis® Consumer Report released today.

The report, which interviewed 1,500 Australians nationwide during May, provides a quarterly analysis of the issues affecting the nation.

Report author Ms Christena Singh said the consumer confidence indicator rose by a record 18 percentage points during the quarter, taking it to 39 per cent.

The results indicate that six in 10 Australians are confident about their financial prospects over the next 12 months, while two in ten are worried.

“We have not seen consumer confidence this strong since February 2008, when the indicator was at 44 per cent.

“Nevertheless, consumer confidence is considerably below the record high of 61 per cent achieved in December 2007,” Ms Singh said.

Employment is the key driver of consumer confidence in Australia at this current time.

“Having a secure job is the key reason for being confident, while unemployment is the key reason for being worried,” she noted.

Australians’ attitudes were considerably different during the boom times experienced in December 2007, when having not only a job but a good job was very important, and interest rates were the key reason to worry.

“It is interesting to note that while Australians are increasingly optimistic about their financial prospects, they believe the Australian economy is contracting,” she explained.

According to the survey results, two-thirds of Australians believe the Australian economy is currently slowing, while only four per cent feel it is growing.

However, the majority of Australians appear to have so far escaped any major impact from the economic downturn.

“Less than four in 10 said they had been personally impacted by the current economic situation, while more than six in 10 Australians said they had not been impacted.”

A fall in superannuation followed by a decrease in income, rising prices and employment difficulties are the key reasons for being impacted.

Ms Singh noted that the health system (7.13), and not economic issues, was Australians’ overall most pressing concern, although almost all issues were of less concern this quarter compared with last quarter.

The increase in the cost of living (7.08) and the state of the economy (7.04) were the next major concerns reported.

The environment (6.88) has fallen from equal second biggest issue last quarter to fourth place this quarter, down from 7.37. Unemployment comes in as our fifth concern (6.80).

The standards and quality of our political leaders has had the highest increase, up by 0.05 to 6.50.

The health system is the biggest concern for Australians aged 40-49 years, while the environment ranks highest for those aged 20-29 years and the drug problem is the main issue (7.95) for those aged 65 plus.

Economic issues are most pressing for those aged between 30-39 years and 50-64 years: The cost of living is the number one concern (7.30) for those 30-39 years, while the state of the economy (7.38) scores highest for those 50-64 years.

In line with decreasing concerns about the environment, the results show that Australians are now less willing to pay more for energy costs.

Fifty per cent of Australians said they were willing to pay more for energy costs under the Federal Government’s proposed Carbon Pollution Reduction Scheme, down from 55 per cent last quarter and 60 per cent two quarters ago.

On average, Australians are prepared to pay $149 per year for energy costs, down from $160 last quarter and $169 the two quarters ago.

About Sensis

Sensis is Telstra's advertising business and Australia's leading directories information resource, helping Australians find, buy and sell. Sensis delivers innovative and integrated local search and digital marketing solutions via print, online, voice and mobile channels to connect Australians 24 hours a day, seven days a week. Sensis' powerful, multi-channel portfolio provides an unparalleled local information source incorporating the White Pages® and Yellow Pages® directories; the MediaSmart digital advertising business; the Whereis® digital mapping business; the Citysearch® entertainment and lifestyle website; the sensis.com.au search engine; the 1234 operator-assisted, premium voice information service; and the accommodation website gostay.com.au. Sensis is also a partner in some of China's most popular websites including real estate and home furnishings website, SouFun.com; auto websites Autohome.com and Che168.com; and digital devices websites IT168.com and PCPop.com.cn.