WA voters lose faith in political process

Colin Barnett's hardline State Budget has hit WA voters and shoppers with consumer confidence sliding in its wake.

The WA Chamber of Commerce and Industry-Curtin University measure of consumer sentiment, to be released today, found almost one in every two shoppers believes the political environment is now weighing on them.

While there has been continuing concern about how the Federal election would play out on consumers, the chamber's survey is the first to show an impact from the State political landscape.

Since handing down the Budget last month the Barnett Government has faced pressure, including its reversal on the solar panel feed-in tariff and planned cuts to the education sector.

Towards the end of last year the political environment was rated by about a third of those surveyed as a major concern of consumers.

But now almost half ranked politics as a major concern.

That has translated into just 10 per cent of consumers expecting the economy to strengthen over the coming three months. A third expect it to weaken. Over the coming year, 39 per cent of those quizzed believe the economy will deteriorate compared with a quarter who think it will lift.

Chamber chief economist John Nicolaou said it was clear the political environment of recent months was playing on the minds of the State's consumers.

"The State Budget and a raft of policy and legislative changes in the lead-up to the Federal election campaign, have all contributed to the uncertain political environment this quarter," he said.

"This has seen consumers become progressively more pessimistic about the future."

WA consumer confidence has now sunk well below that in other States where Federal electoral issues loom just as large.

In another sign that State-specific issues are playing on WA shoppers, the survey found buying conditions for major household items fell to their lowest level in two years through the September quarter.

The pessimism of consumers across WA was highlighted by yesterday's retail trade figures.

Despite sales growing in value 0.1 per cent nationally, they dropped 0.7 per cent in WA.

Sales through the State's department stores dropped to their lowest level in more than two years. Over the past year the value of sales has grown just 2.2 per cent - less than the rate of inflation.