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Consumer Confidence Plunges to Worst Level Since 1990s
The Westpac-Melbourne Institute index fell to 80.4, and post-hike readings dropped to 67.2 as fuel costs and higher rates weighed on households.
- The Reserve Bank lifted interest rates to a 15-year high, sending consumer confidence plummeting 4.7 per cent to 80.4 in October, the lowest level since the Middle East conflict outbreak.
- Westpac head of Australian macro forecasting Matthew Hassan said consumers face a "cost-of-living nightmare," citing pervasive high fuel costs and the RBA move weighing heavily on people's outlooks.
- Renters remained the most optimistic sub-group, while those owning their home outright experienced the largest sentiment decline as the housing market downturn extended for six months.
- Sentiment is at its weakest point since the previous recession, with AMP economist Bui noting that declining confidence suggests per capita consumption will likely fall into contraction this year.
- Despite rising unemployment expectations of 1.9 per cent, Citi analysts Josh Williamson and Faraz Syed reported job vacancies reached a two-year high, signalling labour market resilience.
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Australia Westpac Consumer Sentiment Drops to 80.4 as Post-RBA Responses Collapse - ActionForex
Australian consumer sentiment deteriorated sharply in October, with the Westpac–Melbourne Institute Consumer Sentiment Index falling 4.7% from 84.4 to 80.4. The weakness was especially pronounced after the latest RBA rate hike. Sentiment among the 60% of respondents surveyed before the decision was 86.9, slightly above September’s reading, but collapsed to 67.2 among the 40% surveyed […]
Coverage Details
Total News Sources7
Leaning Left0Leaning Right2Center1Last UpdatedBias Distribution67% Right
Bias Distribution
- 67% of the sources lean Right
67% Right
C 33%
R 67%
Factuality
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