The Westpac Melbourne Institute Index of consumer sentiment dropped 3 per cent to 83.8 in July, from 86.4 in June, weighed down by interest rate increases and surging inflation.
This marks the seventh consecutive monthly fall, and the index has now dropped 19.7 per cent since December 2021.
Westpac described it as “a precipitous tumble”, comparable to the two–month plunge during COVID (–20.8 per cent); and the six–monthly declines ahead of the global financial crisis (–29.7 per cent).
It is compares to the early 1990s recession (–20.5 per cent); the mid–1980s downturn (–23.8 per cent); and early 1980s recession (–18.8 per cent).
