Australia sentiment lowest in more than 16 years
Australian consumer sentiment plunged to its lowest level in more than 16 years in July as rising oil prices eroded confidence, according to a survey released.
By Agencies |
SYDNEY: Australian consumer sentiment plunged to its lowest level in more than 16 years in July as rising oil prices eroded confidence, according to a survey released on Wednesday.
The monthly Westpac-Melbourne Institute consumer sentiment index fell 6.7 per cent to 79.0, its lowest reading since January 1992.
Westpac chief economist Bill Evans said it was a "surprisingly large fall" because it followed a 5.6 per cent drop in June and came at a time when interest rates have been steady since March.
"Households would have been disturbed by the rise in petrol prices and the prospect of further increases as oil price rises feed into pump prices," Evans said.
He said other factors weighed on sentiment, including a nine percent fall in the share market over the past month and data released in June showing the first fall in employment in 19 months.
"These consistently weak reads are pointing to a period of very weak consumer spending and associated economic activity," Evans said.
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