Consumer sentiment ticked up in May on easing fuel costs: Westpac
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The news: Consumer sentiment rose 3.5% to 83 on the index in May from 80.1 in April, as fuel price pressures eased, according to the latest figures from Westpac–Melbourne Institute Consumer Sentiment Index.
The context: Westpac head of Australian macro-forecasting Matthew Hassan said that, despite a modest improvement, consumers remain pessimistic.
While some of April’s shock from spiked fuel prices has eased, Hassan stated that any positive sentiment was largely offset by the RBA’s 25 basis point rate hike at the start of the month.
However, he added that survey responses showed a slight improvement in consumer sentiment following the recent Federal budget announcement.
The index also highlights major generational differences, with sentiment among the Baby Boomer and Generation X cohorts remain extremely weak, tracking just below 70. Millennials are only modestly pessimistic, with an average reading of 94.6, while sentiment is outright positive for Generation Z at 104.
