Australia: Consumer confidence continues fall in July
July 15, 2015
The Westpac-Melbourne Institute Survey of Consumer Sentiment fell sharply from June’s 95.3 points to 92.2 points in July, its lowest reading in seven months. The indicator has been well below the 100-point threshold that separates optimistic from pessimistic territory for 15 of the last 17 months.
The institute attributed the fall in consumer sentiment to disturbing news from overseas, particularly the Greek debt crisis compounded with decreasing demand from China, drawing this conclusion from similar consumer reaction to European instability in 2011. The institute further commented that the effects of the external factors could be transitory, stating: “further evidence that this headline impact from overseas news is unlikely to be sustained can be found in the response of households to the outlook for the unemployment rate. As readers will be aware we have been concerned for some time around the persistently elevated concerns that respondents have for the outlook for the jobs market.”
Author: Robert Hill, Economist