Gen Y Australians concerned about EU crisis

GENERATION Y is more anxious about the impact of the European debt crisis on the Australia economy than are their elders, a new survey has found.

The survey, by mortgage provider Loan Market, has found that 61 per cent of Australians are more worried about an uncertain global economic environment than by interest rates, unemployment and the resources boom.

However, the online survey of 763 respondents also found that of that group Gen Y accounted for 74 per cent.

“While it’s obviously a challenging situation in Europe, it’s a positive to see Gen Y’s responsive and alert to the impact a euro crisis could have in Australia,” Loan Market corporate spokesman Paul Smith said in a statement on Thursday.

Looking at the other major issues influencing confidence, 19 per cent of respondents nominated potential cuts in interest rates, five per cent the resources boom and 15 per cent pointed to rising unemployment.

Mr Smith said the Reserve Bank of Australia (RBA) opted to keep the official cash rate on hold at 4.25 per cent at this week’s board meeting, despite evidence that consumers still lack confidence.

“While the RBA acknowledges the fundamentals of the Australian economy are sound, consumer confidence is below par and that is definitely hurting sectors such as retail and building,” he said.

“While the RBA has resisted the opportunity to lower the cash rate this month, there will most likely be more pressure to cut rates at their next meeting if the situation in Europe doesn’t improve and domestic confidence continues to wane.” – AAP