Australian households are copping it from all sides. Wages and salaries are rising at historically low rates while householders are being warned about the dangers in the property market and how many (other) borrowers may suffer were mortgage rates to increase. So, it is not really a mystery when a survey of consumer sentiment does not indicate rampant optimism.
The Westpac-Melbourne Institute consumer sentiment index limped a little lower in April, and recorded a decrease from 99.7 to 99.0. Any reading below 100 indicates the number of consumers who are pessimistic is more than the number of consumers who are optimistic. Bill Evans, Westpac’s chief economist said he thought it was going to be worse. “This is a surprising but welcome result.”
