February 11, 2025 00:32 GMT
AUSTRALIA DATA: Consumers Remain Pessimistic As Cost-Of-Living Still A Problem
AUSTRALIA DATA
Westpac’s measure of consumer confidence was little changed in February rising 0.1% m/m to 92.2 as the positive effect of increased talk of a February rate cut following the Q4 CPI data was offset by global uncertainty and continued cost-of-living pressures. Consumers are not as pessimistic as they were in 2023 but confidence remains negative about current conditions but is improving regarding the outlook.
Australia Westpac consumer confidence
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Source: MNI - Market News/Refinitiv
- Family finances compared to a year ago were the weak point in the February Westpac survey falling 3.4% m/m, the second straight fall, but a year ahead rose 0.6% m/m.
- Perceptions of the economic outlook were more positive rising 1.6% m/m for a year ahead and 0.9% m/m for 5-years out.
- Unemployment expectations improved 1.1% to 125.8 signalling that perceptions of the labour market remain positive and employees are not expecting layoffs.
- The “time to buy a major household item” continued its gradual improvement rising 0.1% m/m to be up 4.7% y/y.
- Households were more pessimistic about the housing market in February with the “time to buy a dwelling” down 2.3% m/m after rising 10.2% in January but it still stands 18.4% higher than a year ago as rate hike expectations have dissipated.
- The Westpac survey was undertaken between February 3 and 6.
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