Investing.com — Australian consumer confidence deteriorated sharply, with households increasingly concerned about their finances, the economic outlook and jobs as cost-of-living pressures intensified, data from Westpac showed on Tuesday. <\/p>\n
The Westpac-Melbourne Institute Consumer Sentiment Index fell 4.7% to 80.4 from 84.4 in September, missing a forecast 1.2% decline that would have put the index at about 83.4. The 80.4 reading was also among the weakest recorded since the survey began in the early 1970s. <\/p>\n
Westpac said the latest Reserve Bank of Australia rate increase to 4.6%, the highest level since 2011, appears to have sharply rattled consumers. <\/p>\n
Sentiment among the 60% of respondents surveyed before the rate decision was 86.9, but plunged to 67.2 among those surveyed after the announcement. <\/p>\n
The nearly 20% difference between the pre- and post-RBA samples was the largest since Westpac began tracking daily survey responses in 2019, the bank said. <\/p>\n
Fuel prices have also become a major drag, with average weekly pump prices rising above A$2.30 a litre, nearly 25% higher than at the start of the year. Meanwhile, the standard variable mortgage rate is expected to move above 9%, according to Westpac. <\/p>\n
Westpac said pessimists outnumbered optimists in 102 of 106 consumer groups tracked by the survey, while more than 80% of consumers expected mortgage rates to rise over the next year. <\/p>\n
The report also showed growing unease about the jobs outlook, suggesting pressure on household finances is broadening beyond inflation and borrowing costs. <\/p>\n
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