Australia: Consumer sentiment moderates in October
October 9, 2013
The Westpac-Melbourne Institute Survey of Consumer Sentiment moderated to 108.3 points in October after the highest reading in over two years was recorded in the previous month (September: 110.6). This is the fifth consecutive month in which the index is above the 100-point threshold that separates optimistic from pessimistic territory.
According to the Westpac-Melbourne Institute, the descent in the index can be attributed to the, "expected retreat following the positive expectations around the election result." Consumers' expectations regarding the economic outlook for the next 12 months as well as for the next 5 years suffered the steepest declines, after having recorded the largest increases in September. Meanwhile, consumers' financial expectations are now below their pre-election levels and their expectations regarding job prospects also deteriorated this month.
FocusEconomics Consensus Forecast panelists see private consumption growing 2.2% in 2013, which is unchanged from last month's forecast. In 2014, panelists see private consumption expanding 2.8%, which is also unchanged from last month's projection.