SYDNEY: Australia’s consumer confidence remains little changed this month as a recovery through the second half of last year showed signs of stalling, reflecting ongoing cost of living pressures and mounting global uncertainty.
Sentiment rose 0.1% in February to 92.2 points, a Westpac Banking Corp survey showed yesterday.
The consumer mood remains gloomy with 100 points the dividing line between pessimism and optimism.
“Much of that caution still centres around stretched household finances, which look to have come under renewed pressure since the start of the year,” said Matthew Hassan, a senior economist at Westpac.
“Overall, the mix suggests there may have been a larger than normal financial ‘hangover’ from the Christmas period and that many are still struggling with cost-of-living problems.”
The report comes a week before the Reserve Bank of Australia (RBA) is expected to begin its monetary policy easing cycle, having held its benchmark rate at 4.35% since November 2023.
Household sentiment has been in the doldrums in the post-pandemic period as a surge in inflation prompted the RBA to tighten policy at the fastest pace in a generation. — Bloomberg
