Australia: Consumer sentiment rebounds in June
June 12, 2013
In June, the index of consumer sentiment published by Westpac and the Melbourne Institute rose to 102.2 points from 97.6 in May. As a result, the index rose above the 100-point threshold that separates optimistic from pessimistic territory after having fallen below it for the first time since October last year in May.
According to Westpac and the Melbourne Institute, "some of the factors behind the sharp drop in sentiment in May were temporary. In particular, concerns stemming from the Federal Budget may have eased somewhat in June. However, a deterioration in consumer sentiment around prospects for the Australian economy, which has been a key underlying theme over the last three months, remains apparent".
All five components of the index improved compared to May. In particular, households' assessment of their personal finances recorded the strongest gain. Against this backdrop, the sub-index related to the intentions to purchase major household items rose 3.7% over the previous month.
FocusEconomics Consensus Forecast panellists see private consumption growing 2.4% in 2013, which is unchanged from last month's forecast. Panellists see private consumption expanding 3.1% in 2014.
Author: Armando Ciccarelli, Head of Data Solutions