Consumer confidence crashes to lowest level since late 1990s after RBA rate rise
Consumer confidence hit its lowest level since the late 1990s after the RBA raised interest rates.
The Westpac-Melbourne Institute index showed a sharp fall in the week after the RBA's September 29 decision to raise rates. Mortgage holders were hit hardest, with sentiment at 77 points as borrowing costs climbed.
Petrol prices added to the squeeze, with weekly bills up about $20 compared to the start of the year. Assessments of family finances and buyer appetite fell most sharply.
Renters remained the most optimistic group at 84.8 points. Despite the gloom, job vacancies have hit a two-year high and unemployment expectations suggest the labour market is still holding, though fears of job losses are rising.
Westpac's head of macro-forecasting said Australians have been stuck in a cost-of-living crisis with no end in sight.
- 67.2 percent
- Index post-RBA decision
- 77 points
- Mortgage holder sentiment
- $20 since start of year
- Weekly petrol bill increase
- September 29
- RBA rate decision date
Why it mattersWeak confidence tends to correlate with lower household spending. The downtrend suggests consumption may fall further into contraction this year.
AustraliaAustralian families face tougher decisions on spending and investment as mortgage costs rise and prices stay high, with the weakest sentiment in three decades.
Corroborated byperthnow.com.au
✓ Claims checked against the source and corrected before publish. checked 6 h ago
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