Deakin Speaking

Consumer confidence has fallen by 8.3% to its lowest level in two years, according to the Westpac-Melbourne Institute Consumer Sentiment Index.

The drop has been connected to speculation about the impact of the carbon tax, with Treasurer Wayne Swan calling on Opposition Leader Tony Abbott to “stop scaring the consumers”.

Retailer David Jones last night issued a dramatic profit downgrade, saying it expects second-half profits to be down by 9% to 12%. The company blamed the slowdown of sales on factors such as offshore Internet retailers due to the high Australian dollar, fears about the carbon tax and the impact of the flood levy.