Matthew Hassan, Research Analyst at Westpac, explains that Australian consumer sentiment has tracked back to neutral as the earlier tax cut boost wanes and a variety of negatives impact.
Key Quotes
“The housing market correction is in the mix but the detail suggests the impact on sentiment has been small so far.”
“The Westpac Melbourne Institute Index of Consumer Sentiment has weakened over the last 3mths, falling 4.2% and retracing all of the gains seen through the middle of the year. At 100.5, the Index is now broadly unchanged on a year ago and only just above the 100 line, indicating a near even mix of optimists and pessimists.”
“A waning boost from the income tax cuts announced in May, renewed political instability, mortgage rate increases, further declines in house prices, rising petrol prices and unsettled financial market conditions all look to have contributed to the softer reads.”
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