Australian consumer sentiment bounces in October: survey
AUSTRALIAN consumer sentiment rebounded in October as interest rates were held steady for a fourth consecutive month, a survey showed on Tuesday, though the mood overall remained sombre amid persistent cost-of-living pressures.
The Westpac-Melbourne Institute index of consumer sentiment bounced 2.9 per cent in October from September, when it slipped 1.5 per cent. The index reading of 82.0 showed pessimists still outnumbered optimists.
The index has been below the neutral 100 mark since March 2022, the longest streak since the early 1990s recession. “The consumer mood has improved slightly but optimism remains in extremely short supply,” said Matthew Hassan, a senior economist at Westpac.
“While there are some faint glimmers of hope around family finances and the outlook for jobs, these are being overshadowed by still-high inflation and renewed rate rise concerns.”
The Reserve Bank of Australia (RBA) held rates at 4.1 per cent again this week, while cautioning that it might yet have to hike further to bring inflation to heel.
Hassan noted 63 per cent of respondents expected mortgage rates to rise over the year ahead, up from 48 per cent in September.
The survey’s measure of family finances compared to a year ago rose 2.7 per cent, while the outlook for the next 12 months improved by 2.6 per cent. The economic outlook for the next year was flat, with a modest improvement in the five-year outlook.
There was some better news for retailers, with the measure of whether it was a good time to buy a major household item jumping 7.6 per cent. REUTERS
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