Consumer confidence lifts but remains low: survey
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The news: Consumer sentiment recovered slightly in September but remains low by historical standards as fears of interest rate hikes grow, a monthly survey shows.
The numbers: The Westpac-Melbourne Institute Consumer Sentiment Index lifted 2.9% to 82 in October, up from 79.7 in September. Both figures are considered within the "deeply pessimistic" zone, where the index has remained for more than a year.
The context: The Reserve Bank's extended pause on interest rates has only led to a limited boost in sentiment, Westpac economists said, with 63% of consumers surveyed expecting further hikes in the year ahead, up from 48% in September. The number of Australians expecting an interest rate cut in the next year fell by more than half to 7% in October.
What they said: "The consumer mood has improved slightly but optimism remains in extremely short supply," Westpac chief economist Matthew Hassan said in a statement.
"Today’s release again highlights the main negative at play: intense pressures bearing down on the Australian consumer pointing to continued weak spending in the near term."
The source: Westpac-Melbourne Institute Survey
