Australia: Consumer confidence falls into negative territory in January
January 20, 2016
The Westpac-Melbourne Institute Survey of Consumer Sentiment took a turn for the worse in the beginning of the year, as it decreased from 110.8 in December to 97.3 in January. The decrease puts the indicator below the 110 threshold that separates optimistic from pessimistic territory.
The institute stated that the indicator appears to have fallen as a result of negative sentiment stemming from abroad, as there was little domestic news that would have tipped sentiment into pessimistic territory. The institute mentioned that volatility in China’s markets may have affected households. Regarding consumers’ forward looking expectations, the institute elaborated that, “Among the other components: ‘economic conditions over the next 12 months’ fell by 5.0%; ‘economic conditions over the next 5 years’ improved by a modest 0.3%; and ‘time to buy a major household item” fell by 1.7%.”
Author: Robert Hill, Economist