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Australia CCI Dips

Australia CCI DipsAustralia CCI Dips

A measure of Australia’s consumer sentiment slipped in November after three straight months of gains ahead of the US election and as households became less confident of the property market and their own finances, its compilers said on Wednesday.

The Melbourne Institute and Westpac Bank survey of 1,200 people found consumer sentiment faltered 1.1% in November, from October when it rose by a similar quantum, Reuters reported.

That left the index at 101.3, with optimists still outnumbering pessimists. “The Index continues to hold in a very tight band,” said Westpac chief economist Bill Evans. “If you compare the average level during this period with the average over the comparable six month period in 2015 there has been a clear lift in the index of 4.7%.”

However, sentiment looked to have been tempered in November as the Reserve Bank of Australia stayed pat at its policy meeting which did not bode well for those with home loans. The sentiment among those holding a mortgage fell 3.1% from a year ago.

The survey measure of family finances fell 1.5% compared to a year ago while expectations for the economic outlook over the next 12 months slipped 0.5%.

The measure of whether this was a good time to buy major household items slipped 2.5% from October, in a slight disappointment for the outlook for Christmas spending.

Further, consumer spending, which accounts for more than half of Australia’s gross domestic product, has been on a gradual downtrend since the start of 2014.

 

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