The event, hosted by Flight Centre Travel Group’s Australian corporate arms, discussed the importance of doing business in a post-pandemic world
Consumer sentiment has experienced its longest run of pessimism since the Global Financial Crisis and, before that, the early 1990s recession, according to the Westpac monthly sentiment index.
Consumer confidence fell by five percent in March, as Australians worry about rising interest rates and falling employment levels.
Businesses have welcomed news of a surprise jump in consumer sentiment, as the number of optimists outweighs the number of pessimists for the first time in some months.
Two consecutive interest rate cuts have failed to boost post-Christmas consumer sentiment, a result economists have called “disappointing.” But slowing inflation means businesses may benefit from more rate cuts in the months to come.
Consumer sentiment has jumped 6.3 percent this month, thanks largely to the Reserve Bank’s decision to cut interest rates.
More bad news for businesses has been spelt out today, with the Westpac-Melbourne Institute Index of Consumer Sentiment for August falling to levels not seen since May 2009.
Consumers remain positive despite successive interest rate increased from the Reserve Bank of Australia and increases in home loan lending rates above and beyond the RBA in November by all major banks.
The Westpac – Melbourne Institute Index of Consumer Sentiment has bounced back 17 percent over the last two months as consumers burned by six RBA interest rate increases in nine months recover.
Westpac’s Melbourne Institute Leading Index has peaked, but will remain well above the long term trend of 3 percent over the next three to nine months, triggering fears of a rate rise in August.
