Aussie consumers: pessimists are outnumbering optimists - Westpac

Analysts at Westpac noted that the Westpac Melbourne Institute Index of Consumer Sentiment declined by 1.2% in August from 96.6 in July to 95.5 in August.

Key Quotes:

"The consumer mood has deteriorated over the last year with August marking the ninth consecutive month where pessimists are outnumbering optimists. We have not seen such a succession of weak reads since 2008. 

The survey detail suggests increased pressures on family finances; concerns around interest rates; and housing affordability in NSW and Victoria are more than outweighing increased confidence around jobs. 

The further weakening in consumer sentiment comes despite some positives leading into this month’s survey. The RBA again opted to leave interest rates unchanged at its August meeting while the Governor sent a clear signal in a recent speech that rates were on hold in the immediate future. 

Other positives include: a continued improvement in labour market conditions; lower petrol prices (average pump prices down 15c/litre nationally since early June) and a booming Australian dollar, which briefly touched USD 0.80."