Advanced Search

Share Coverage



Category: Economic Trends / Consumer Finance / Retail / Housing Industry / Business, Economics and Finance

Consumer sentiment remarkably stable despite interest rate cuts, Brexit

Wednesday, 14 Sep 2016 09:04:31 | Thuy Ong

Shoppers walk through Queen Street Mall in Brisbane, Australia. (AAP: Dan Peled)

A new report shows consumer sentiment has been "remarkably stable" for the last six months, despite two interest rate cuts from the Reserve Bank, the surprise Brexit result in the UK, and the federal election.

The Westpac - Melbourne Institute Index of Consumer Sentiment rose 0.3 per cent in September to 101.4, from 101 in August.

The survey is based on responses from 1,200 adults, and one part of the survey is which news categories the respondents most recalled.

A year ago, most recalled news stories were on economic conditions, at 53.9 per cent, and international events at 41.8 per cent. These topics have now fallen to 21.9 per cent and 11.4 per cent respectively.

The most recalled news category for the month was budget and taxation at 26 per cent, which has been assessed as more unfavourable than in June.

The survey found confidence in the housing market is improving, with major markets improving over the month. Sydney rose by 4 per cent, while Melbourne jumped 5.1 per cent.

"We expect rates will be held steady in November," noted Westpac's chief economist Bill Evans in the report.

"Signs of stability in the real economy point to steady rates being the most appropriate policy.

"Of course there is also the possibility of a shock from the inflation report on October 26, but both our inflation forecasts and our assessment of current high RBA inertia to moving again this year point to stability in November."

AustraliaPlus


 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend