Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
Drop in consumer sentiment ‘disappointing’: Westpac

Drop in consumer sentiment ‘disappointing’: Westpac

New data has revealed that consumer sentiment has declined this month – a surprise result that has “dashed” hopes that sentiment was about to head higher, according to Westpac.

The Westpac Melbourne Institute Index of Consumer Sentiment showed a 4 per decrease from 99.1 in March to 95.1 in April, which Westpac chief economist Bill Evans labelled as “disappointing”.

“After holding above 100 in the November–February period, the index has now been below 100 for two consecutive months,” he said.

Advertisement
Advertisement

“A print below 100 means that pessimists outnumber optimists. That had consistently been the case in the March 2014 to October 2015 period when the index only exceeded the 100 level twice in 20 months.

“With four consecutive readings above 100, we were hopeful that confidence had moved on to a sustainable higher plain. Today’s result would appear to dash those hopes.”

The index is now 6.4 per cent below its reading six months ago in November.

Mr Evans said that despite the disappointing result in consumer sentiment, Westpac expects the Reserve Bank to keep rates on hold at its next board meeting in May.

“We retain our call that rates will remain on hold for the remainder of 2016,” he added.

[Related: Confidence among businesses lifts again]

Drop in consumer sentiment ‘disappointing’: Westpac
mortgagebusiness

 

Latest News

Regulators could move to set caps on loan volumes for borrowers with high debt-to-income ratios if the housing market recovery continues to ...

The federal Treasurer has welcomed the final budget outcome for the 2019 financial year, which shows that the deficit now equates to zero pe...

The Federal Reserve has slashed rates for the second consecutive month, “reinforcing” the necessity of further cuts to the cash rate in ...

FROM THE WEB
podcast

LATEST PODCAST: New lending launches

Do you think the mortgage market will see more consolidation this year?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.