The Westpac-Melbourne Institute Survey of Consumer Sentiment fell to 99.5 points in March, which was down from the 100.2 points tallied in February and marked the lowest print since May 2013. As a result of March's drop, the indicator fell below the 100-point threshold that separates optimistic from pessimistic territory. The deterioration in consumer sentiment was mainly the consequence of, “the run of bad news around the motor vehicle industry,” as the country's main car producers recently announced closures in the next years. The announcements impacted negatively in consumers' job expectations, which were increasingly pessimistic. Moreover, the Institute reported that worries about future employment tallied the, “highest reading since we began running these questions in 1976.” Despite the deterioration in expectations regarding the labor market, consumers didn't express worries about the impact of the rise in jobless rate in their own finances. FocusEconomics Consensus Forecast panelists see private consumption growing 2.6% in 2014, which is unchanged from last month's forecast. In 2015, panelists see private consumption expanding 2.9%.
Australia Consumer Confidence
Consumer sentiment enters pessimistic territory
March 12, 2014
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Australia Consumer Confidence Chart
Note: Index of consumer sentiment; 100-point threshold indicates equal number of positive and negative responses.
Source: Westpac - Melbourne Institute Survey of Consumer Sentiment.
Australia Economic News
October 12, 2016
The Westpac-Melbourne Institute Survey of Consumer Sentiment increased 1.1% in October as the index rose from September’s 101.4 to 102.4.
October 11, 2016
The business confidence index published by the National Australia Bank (NAB) was stable in September at August’s 6 points.
October 5, 2016
Nominal retail sales inched up 0.4% in August from the previous month in seasonally-adjusted terms, up from July’s flat reading.
October 4, 2016
At its 4 October monetary policy meeting, the Reserve Bank of Australia (RBA) kept its policy rate steady at an all-time low of 1.50% after cutting its rate by 25 basis points twice this year, once in May and once in August.
September 15, 2016
The labor market lost 3,900 net new jobs in August compared to the previous month in seasonally-adjusted terms.