Australia: Consumers turn pessimistic in December
December 14, 2016
The Westpac-Melbourne Institute Survey of Consumer Sentiment decreased 3.9% in December as the index fell from November’s 101.3 to 97.3, its lowest level since April 2016. The drop pulled the index below the 100 mark, indicating that the number of pessimists now outnumbers optimists.
The Institute noted that consumer sentiment was deteriorating because of heightened concerns regarding the economic situation, stemming from the Australian economy’s contraction in Q3. News of increasing interest rates following the U.S. election also contributed to consumers’ more downbeat mood, as did continued weakness in the labor market.
Author: Christopher Mc Innes, Economist