Australia: Sentiment sits in pessimistic territory for sixth consecutive month
August 14, 2012
In August, the index of consumer sentiment published by Westpac and the Melbourne Institute dropped to 96.6 points. The figure was down from the 99.1 points recorded in July, marking the first drop after three consecutive increases and the sixth month in a row in which the index sits below the 100-point threshold that separates optimistic from pessimistic territory. According to Westpac and the Melbourne Institute, the August reading represents a disappointment as it came in amid a flow of positive news and indicator releases since the last survey in July. All components of the index deteriorated compared to the previous month, with the exception of households' short-term expectations (12 months) on their financial situation. Accordingly, the sub-index related to the intentions to purchase major household items deteriorated compared to July.
Author: Armando Ciccarelli, Head of Data Solutions