Australia: Consumers less optimistic in December
December 16, 2013
The Westpac-Melbourne Institute Survey of Consumer Sentiment fell to 105.0 points in December, which was down from the 110.3 points tallied in November. Despite December's drop, for the past seven months the indicator has remained above the 100-point threshold separating optimistic from pessimistic territory.
According to the Institute, sentiment "is 4.3 points below the average print for the last 3 months which covered the post-election period and the time of most euphoria around house prices. It appears that the boost in Confidence partly associated with the election result and booming house prices has faded in December." In addition, the Institute mentioned a deterioration in consumers' assessment of the outlook for the next 12 months, as well as worsening conditions in the labor market; more consumers expect unemployment to rise in the upcoming months.
FocusEconomics Consensus Forecast panelists see private consumption growing 2.1% in 2013, which is unchanged from last month's forecast. In 2014, panelists see private consumption expanding 2.7%, which is also unchanged from last month's projection.