Australia: Consumer confidence sees sharp fall in June
June 10, 2015
The Westpac-Melbourne Institute Survey of Consumer Sentiment fell sharply from May’s 102.4 points to 95.3 points in June, its lowest reading in five months. The indicator has now again fallen below the 100-point threshold that separates optimistic from pessimistic territory after moving into positive territory in May. The indicator has been below the 100-point threshold for 13 of the last 15 months.
June’s reading suggest that last month’s rally was transitive, reflecting short-lived optimism regarding the Reserve Bank of Australia’s cash rate cut and the release of the federal budget. The Institute remarked that the fall in June indicates that underlying concerns about the economy remain, noting that, “several factors are likely to have re-focused attention. The last month has seen further falls in the sharemarket (the ASX200 is now down 8.5% since the start of May); ongoing uncertainty in Europe; more signs of soft conditions in labour markets; and added nervousness about the outlook for house prices.”
Author: Robert Hill, Economist