...Aussie consumers are still spending, they only just more careful how they spend.
...which puts the RBA in a tough spot if they should pull the trigger to lift rates. Consumer sentiment edges up, but still deeply pessimistic
Cecile Lefort
The Westpac–Melbourne Institute Consumer Sentiment Index rose 1.7 per cent to 83.6 in June from 82.2, but is still firmly in deeply pessimistic territory.
“At 83.6, the index remains well below the ‘neutral’ level of 100, meaning pessimists outnumber optimists by nearly 20 percentage points. The survey detail suggests positives from fiscal support measures are being negated by increased concerns about inflation and the outlook for interest rates,” says Matthew Hassan, a senior economist at Westpac.
The survey shows that half of consumers expect mortgage rates to rise over the next 12 months.
