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Consumer confidence grim as views on family finance weaken

consumer confidence housing Westpac-Melbourne Institute Consumer Sentiment Index june 2017

Housing worries have pushed consumer confidence to its lowest level since mid-2016.

The Westpac-Melbourne Institute Index of Consumer Sentiment fell to 96.2 in June, down from from 99 in April and 98 in May.

While the survey was conducted following May’s Federal Budget, it is not believed to have had a marked impact on consumer confidence.

More concerning are weaker consumer views around family finances, especially over the next 12 months.

consumer confidence housing Westpac-Melbourne Institute Consumer Sentiment Index june 2017

“With the RBA again leaving policy on hold, sentiment may be more impacted by reports of a dip in house prices in May and the soft Q1 GDP result, although the latter was not as weak as some feared, with Australia’s expansion also hitting a new record for longevity,” the report said.

“The global backdrop was again unsettled with terrorist attacks in the UK and more political drama in the US.”

Financial markets were mixed when the report was conducted, with the Australian dollar up 1½ cents against the US dollar but the ASX down 2.7%.

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