Australia: Consumer sentiment slide ends in July
July 12, 2017
The Westpac-Melbourne Institute Index of Consumer Sentiment came in at 96.6 in July, up 0.4% from June’s 96.2. The index thus remains below the 100 mark, indicating that the number of pessimists still outnumbers optimists.
This month’s result was negatively affected by renewed fears about the country’s economic outlook and the outlook for interest rates. Much media speculation about the possibility of an interest rate hike by the RBA fueled households’ concerns about their financial future. Already, some banks hiked interest rates for some mortgages. However, households were more upbeat about conditions in the labor market, which led them to see the economic outlook in a moderately more positive light.
Author: Christopher Mc Innes, Economist