Australian consumer sentiment softened in September, a private survey showed on Tuesday, as concerns over a dim economic outlook and sticky inflation largely overshadowed signs of improving family finances.
The Westpac-Melbourne Institute consumer sentiment index fell 3.1% to 95.4 in the first week of September, marking its first decline since April. The index also retreated after hitting a 3-½ year high in August.
A reading below 100 implies that pessimists still outnumber optimists, with the Westpac-Melbourne Institute index having remained below 100 since late-2021.
“Outright optimism remains elusive for Australian consumers. The cost-of-living crisis may be largely over and policy easing generating some uplift but there is still clearly some unease about the path ahead,” Westpac analysts said in a note.
The survey showed consumers growing slightly less confident about further interest rate cuts by the Reserve Bank of Australia, especially following a surprise jump in a monthly consumer price index indicator.
Consumers grew increasingly concerned over the economy, with slowing jobs growth also serving as a source of anxiety for consumers.
Homebuyer sentiment was seen deteriorating during the month, while house price expectations continued to remain high.
Westpac noted that while Australians were growing less risk averse over their finances, the moves still remained weak and sentiment remained cautious.
Source :
https://www.investing.com/news/economic-indicators/australia-consumer-sentiment-weakens-in-september--westpac-4230385
