Westpac Melbourne Institute Consumer Confidence for December down 0.8% m/m
- Prior was +3.9% to a 6-month high
Up 10.7% y/y
Westpac cites:
- Views "around 'Budget and taxation' with the proportion of respondents recalling news on this topic almost doubling since September and the news assessed as considerably less favourable. Presumably speculation around tax changes, particularly with respect to the GST, is beginning to unnerve respondents."
There has been plenty on the media in past weeks about possible VAT (That's the GST WPAC is referring to) hikes in Australia.
Also:
- Confidence around the housing market continues to deteriorate
- The Westpac Melbourne Institute Index of House Price Expectations fell 9.4% in December to be 19.7% down on a year ago and 38% off its high back in 2013
On the RBA outlook:
- The Reserve Bank Board next meets on February 2. We expect the Board will decide to hold rates steady pending further evidence on the labour market; commodity prices; the Australian dollar; and inflation. Westpac has long held the view that the RBA will be on hold throughout 2016 with the risk to any move being clearly to the downside
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I'm filing this under 'better late than never'. Data out at 2330GMT and I was slow getting to it. Apologies' if you were waiting on it.
