Westpac February Consumer Confidence Index: -3.0% m/m to 100.2 (prior was -1.7% to 103.3)
AUD/USD down a fraction on the data, from 31/34 to 22/25 as i type
- Unemployment expectations are higher (to highest since June of 2009)
- The talk of fiscal tightening and potential higher interest rates a concern for households
From Westpac;
- a surprisingly weak result.
- Index is now down 7.5% on a year ago; 9.5% on its recent September high and is at its lowest level since July last year
- “The theme from this survey appears to be that households are particularly worried about the future”
- the component of the Index measuring consumers’ expectations for the economy over the next12 months is at its lowest level since March 2012
- We suspect the run of ‘bad news’ around the motor vehicle industry, other manufacturers and Qantas may have rattled consumers. There may also be heightened concerns about what lies ahead with the May Budget
