It's the economy, stupid

David Scutt


It's the economy, stupid. Australian consumer confidence tanks in September (VIEW LINK) Confidence amongst Australian consumers fell sharply in September with the Westpac-MI index slipping to 94.0. The reading, some 4.6% below August's figure and the sharpest monthly decline since May, snapped a run of three consecutive monthly gains following the budget-induced drop in May. All bar one component deteriorated during the month with the sharpest falls coming from expectations (-5.7%), family finances compared to a year ago (-4.9%) along with huge declines in economic expectations out 1 and 5-years which plummeted 8.4% and 9.2% respectively. In what is reflective of the sluggish economy at present, every single survey component is now lower than what it was a year ago. While any number of factors could be behind the sudden drop, the sudden leap in unemployment to 6.4% in July is likely the chief catalyst behind the sudden deterioration.

David Scutt
David Scutt
Market Analyst

David is a Director of Scutt Partners Pty Ltd and has successfully worked in the financial services markets over the past 12 years with both large and smaller banking groups. He has provided strategic financial analysis for currency and interest...


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