Consumer confidence – aka how people feel about the economy – has plunged to its lowest point since the start of the pandemic in April 2020. The latest survey found sentiment dropped sharply after the Reserve Bank’s latest rate hike – and the Albanese Government’s first budget left 35% of Aussie households feeling worse off financially. As the silly season approaches, nearly 40% of those surveyed said they expect to spend less on Christmas this year – the most on record. Despite this, household spending spiked significantly in September with shoppers splashing out on clothing, going out and household goods. Analysts say it usually takes a few months for interest rate hikes to hit borrowers’ hip pockets. And with power bills set to continue rising, one thing that could be on the cards is a federal intervention to cap energy prices. Yesterday, Treasury Secretary Stephen Kennedy said that’s something he would recommend.