SYDNEY (Reuters) -A measure of Australian consumer sentiment slid for a second straight month in October as concerns about family finances returned amid speculation interest rates might not fall any further, a survey showed on Tuesday. A Westpac-Melbourne Institute survey showed its main index of consumer sentiment dropped 3.5% to 92.1, having fallen 3.1% in […]
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Australia consumer sentiment slides for a second month in October
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SYDNEY (Reuters) -A measure of Australian consumer sentiment slid for a second straight month in October as concerns about family finances returned amid speculation interest rates might not fall any further, a survey showed on Tuesday.
A Westpac-Melbourne Institute survey showed its main index of consumer sentiment dropped 3.5% to 92.1, having fallen 3.1% in September. The reading under 100 means pessimists increasingly outnumber optimists.
Sentiment had been slowly picking up mid-year as the Reserve Bank of Australia cut interest rates three times and inflation looked to be cooling.
However, the RBA last week skipped a chance to cut again and cautioned that inflation was running a little higher than expected, putting in doubt further policy easing.
The shift in mood showed in the survey’s measure of family finances compared to a year earlier which fell 4.8%, while the outlook for the next 12 months sank 9.9%.
The economic outlook for the next year fell 2.5%, while that for five years nudged up 1.4%. In a potential blow to retailers, the index of whether it was a good time to buy a major household item fell 1.1% to 97.2.
(Reporting by Wayne Cole; Editing by Jacqueline Wong)