Australia: Consumer sentiment continues to slide in August
August 9, 2017
The Westpac-Melbourne Institute Index of Consumer Sentiment came in at 95.5 in August, down 1.2% from June’s 96.6. The index thus fell further below the 100 mark, indicating that the number of pessimists outnumbers optimists.
Consumers continue to be worried about their finances as wage growth continues to disappoint and interest rate hikes become more and more likely in the near future. That the RBA postponed any interest rate hike at its last monetary policy meeting did little to alleviate consumers fear, as did the increasingly buoyant labor market. Consumer expectations were more upbeat, however, thanks to the improving outlook of the economy.
Author: Christopher Mc Innes, Economist