Australia Consumer Sentiment Climbs Even as Trump Clouds Outlook
Australia’s consumer confidence rose in November, building on last month’s gains as households are no longer concerned about the risk of further interest rate increases, though Donald Trump’s election victory caused some uneasiness.
Australia’s consumer confidence rose in November, building on last month’s gains as households are no longer concerned about the risk of further interest rate increases, though Donald Trump’s election victory caused some uneasiness.
Sentiment climbed 5.3% from the prior month to 94.6 points, closing in on the 100 dividing line between pessimists and optimists, a Westpac Banking Corp. survey showed Tuesday. The index has held below 100 since March 2022, but is now up 14.4% from its mid-year lows.
The survey was carried over the week ending Nov. 9, providing an insight into consumer reactions to both the Reserve Bank’s policy decision, where it left the key rate at a 13-year high of 4.35%, and the US election result.
The details showed that consumer sentiment was “markedly higher” at the start of the week with an index reading of 99.7 but posted a sharp fall following Trump’s win.
“Whether the strong start, or weaker finish to the week are a better guide depends on how lasting the post-US election drop is expected to be,” said Matthew Hassan, a senior economist at Westpac. “That said, the mood does look to be improving and is providing some more positive signs for retailers ahead of the all-important Christmas high season.”
Household sentiment has been in the doldrums in the post-pandemic period as a surge in inflation prompted the RBA to raise rates; the central bank has pointed to persistent price pressures to argue against joining global counterparts in easing. Consumers are likely jittery over potential fallout from Trump trying to pressure Beijing with tariffs, given China is Australia’s largest trading partner.
Westpac’s November survey included an additional question about Christmas spending, asking consumers whether they plan to spend less, the same or more on gifts than last year. Responses show just over 35% still plan to spend less on gifts, compared with 40% last year.
Other key data points:
This article was generated from an automated news agency feed without modifications to text.
Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
MoreLess
First Published:12 Nov 2024, 05:27 AM IST
- Top Gainers
- Top Losers
- 52 Week High