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Australian consumer confidence fell again in September, entering deeply pessimistic territory, driven by household concerns that the Reserve Bank resume the rise in interest rates, as well as the increase in fuel prices.
The Consumer Confidence Index fell 5.2%, to 84.4 points, as reported Westpac Banking in a statement on Tuesday, where 100 represents the dividing line between pessimists and optimists. The survey revealed that pressures on the cost of living “have increased again,” and the subindex measuring family financial status compared to the previous year plummeted 9.2%.
“The decline in gasoline prices has returned to the deeply pessimistic levels seen at the beginning of the year,” he declared. Matthew Hassanhead of macro forecasting Westpac in Australia. “Local gasoline prices have surpassed US$2 per liter for the first time since April, reflecting rising global energy prices and the end of the temporary halving of the fuel excise tax.”
He Reserve Bank of Australia, RBA, faces pressure to resume raising interest rates at its next meeting, in three weeks, following the release of stronger data on inflation and GDP. It has repeatedly insisted on the need to rebalance the economy, increasing borrowing costs three times between February and May, until reaching the official interest rate of 4.35%. The high rate of inflation “has stoked fears that the Reserve Bank of Australia, RBA, raise interest rates even further in the coming months,” he declared. Matthew Hassan. “This has negatively affected consumer financial and economic expectations. It has likely also contributed to concerns about the continued weakening of the housing market.”
The Australian property market is in a recession following the government’s removal of tax breaks for property investors and rising interest rates. HSBC Holdings Plc. On Tuesday it raised its forecast for the fall in housing prices, from 8% to 13%.
The national house price index from the real estate consultancy Cotity fell 0.9% in August, the fifth consecutive month of declines, bringing the decline from the March peak to 3.6%.
“Concerns about interest rates had a clear negative impact on consumers with mortgages,” he said. Matthew Hassan. “Confidence fell 14% in this subgroup overall, with an especially sharp 18% drop in ratings of ‘it’s time to buy a big ticket item,’ suggesting mortgage spending is slowing.”
