Australia: Consumer sentiment slides in May
May 17, 2017
The Westpac-Melbourne Institute Index of Consumer Sentiment came in at 98.0 in May, down 1.1% from March’s 99.7. The index thus fell further below the 100 mark, indicating that the number of pessimists still outnumbers optimists.
This month’s result was only very marginally, but negatively, impacted by the government’s budget proposal. A majority of households expect their finances to either worsen or stay the same in the wake of the budget. Households’ confidence in the housing market and the outlook for house prices worsened, weighing on overall consumer confidence. This is primarily a result of tighter lending conditions and budget measures intended to discourage housing investment.
Author: Christopher Mc Innes, Economist