Australian consumer sentiment hits four-year low in November as rates rise
In November, Australian consumer sentiment hit a four-year low, according to a survey conducted by Westpac-Melbourne Institute. The main index of consumer sentiment dropped by 2.7% to 78.2, following significant declines of 4.7% and 5.2% in October and September respectively. This was almost a 25% decrease from the previous year.
The survey revealed that pessimists far outnumbered optimists, with sentiment continuing to reach extreme lows, as reported by Westpac's head of Australian macro-forecasting, Matthew Hassan. Consumers are preparing for further interest rate increases. The Reserve Bank of Australia raised rates for the fifth time in 2023, reaching an 18-year high of 4.85% to combat inflation.
This led to a 10.2% decline in the survey's measure of the economic outlook for the next 12 months, while another sub-index measuring the desirability of purchasing major household items fell by 3.7%.
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