Australia: Consumer sentiment drops to neutral in December
December 12, 2012
In December, the index of consumer sentiment published by Westpac and the Melbourne Institute dropped to 100.0 points. The reading was down from the 104.3 points recorded in November, which had marked the highest level since April 2011. With the December reading, sentiment hit the 100-point threshold that separates optimistic from pessimistic territory for the first time in nine months, suggesting stable conditions for consumer spending in the months ahead. According to the survey, the result was surprising, as it came despite further monetary policy easing implemented by the RBA in December. The reading reflected deteriorations in all the sub-components. In particular, the index related to the intentions to purchase major household items dropped 4.8% over the previous month.
Author: Armando Ciccarelli, Head of Data Solutions