SYDNEY: A key measure of Australian consumer confidence fell in March as consumers worried that a proposed carbon tax would hurt their finances, even as they became more optimistic about the economy in the coming year, a Reuters report said on Wednesday, March 9
The survey of 1,200 people by Westpac Bank and the Melbourne Institute released on Wednesday showed its index of consumer sentiment fell 2.4 percent to 104.1, reversing a 1.9 percent rise in February.
"The key factors behind this weak result appear to be concerns over budget and tax issues and petrol prices," said Bill Evans, chief economist at Westpac.
"It is the lowest read for the Index since June 2010 in the aftermath of three consecutive rate hikes by the Reserve Bank and controversy over the mining tax."
While overall confidence index was down 11.3 percent on March last year, the number of optimists still outweighed the number of pessimists, the survey showed.
The largest fall came in the index measuring family finances over the next 12 months, which slid 6.8 percent.
The index measuring responses on "whether now is a good or bad time to purchase a major household item" fell 4.8 percent, while expectations for economic conditions for the next five years edged 2.9 percent lower.
However, the index measuring expected economic conditions over the next 12 months rose 5.7 percent.
Consumers have shown an inclination to save more and spend less since the shock of the global financial crisis, leading to surprisingly soft retail sales. Higher mortgage rates have also eaten into spending power despite strong growth in incomes and low unemployment.
The Reserve Bank of Australia (RBA) has welcomed this new found frugality since it should help provide room for the mining sector to boom without generating inflation. - Reuters
The survey of 1,200 people by Westpac Bank and the Melbourne Institute released on Wednesday showed its index of consumer sentiment fell 2.4 percent to 104.1, reversing a 1.9 percent rise in February.
"The key factors behind this weak result appear to be concerns over budget and tax issues and petrol prices," said Bill Evans, chief economist at Westpac.
"It is the lowest read for the Index since June 2010 in the aftermath of three consecutive rate hikes by the Reserve Bank and controversy over the mining tax."
While overall confidence index was down 11.3 percent on March last year, the number of optimists still outweighed the number of pessimists, the survey showed.
The largest fall came in the index measuring family finances over the next 12 months, which slid 6.8 percent.
The index measuring responses on "whether now is a good or bad time to purchase a major household item" fell 4.8 percent, while expectations for economic conditions for the next five years edged 2.9 percent lower.
However, the index measuring expected economic conditions over the next 12 months rose 5.7 percent.
Consumers have shown an inclination to save more and spend less since the shock of the global financial crisis, leading to surprisingly soft retail sales. Higher mortgage rates have also eaten into spending power despite strong growth in incomes and low unemployment.
The Reserve Bank of Australia (RBA) has welcomed this new found frugality since it should help provide room for the mining sector to boom without generating inflation. - Reuters
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