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.
With an eye on their pockets, over 50 percent of local consumers will skip the traditional summer holiday this year and stay at home, while who do travel will cut down on their spend while on holiday.
Consumer sentiment has jumped 6.3 percent this month, thanks largely to the Reserve Bank’s decision to cut interest rates.
With Christmas less than eight weeks away, retailers have received a much-need confidence boost with the Australian Bureau of Statistics (ABS) reporting retail turnover rose 0.4 percent last month.
Consumer confidence will likely take another hit unless the big banks reject a looming deadline to raise EFTPOS fees, with proposed new “interchange fees” to come into effect from 1 October.
Consumer sentiment fell 8.3 percent in July, to levels not seen since May 2009, thanks to uncertainty about the carbon tax, concerns over the European financial crisis and the ongoing impact of seven rate rises between October 2009 and November 2010.
The June quarter 2010 ACCI-Westpac Survey of Industrial Trends showed a marked softening of manufacturers’ General Business Sentiment for the second half of 2010.
Consumer confidence has continued to rise, despite steady increases in the official cash rate by the RBA since October last year. With continued growth in the labour market and a higher Aussie dollar key to the result. The Westpac-Melbourne Institute of Consumer Sentiment Index for March, which measures the perceptions of consumers towards their future […]
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