The Westpac-Melbourne Institute Index of Consumer Sentiment rose by 1.9% to 94.9 over July consolidating on June’ssmall 0.2% rise, but remaining mired in negative territory for the 4th consecutive month. Confidence is still 7.1% below itsyear ago level. Sentiment plunged in May following the Federal Budget, and has failed to recover in any meaningful waysince then against backdrop of Federal Budget news/issues (mostly negative) continuing to be aired daily in the media. Thisis almost two months after the Budget’s release in mid May. Headline sentiment remains sitting at its lowest levels inalmost three years. There is a risk that prolonged weak consumer confidence negatively impacts on household spendingand borrowing appetite, and hampers the economy’s current growth metamorphosis from mining sector driven growth tonon-mining driven growth.
Read the full report: Economic Research