It's the economy, stupid

David Scutt

Scutt Partners

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
Independent Market Strategist
Scutt Partners

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...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.