Australian consumer sentiment dropped 4.7% in October to 80.4, driven by a significant decline in confidence following the latest RBA interest rate hike.
The Australian dollar is facing downward pressure as consumer sentiment plummeted by 4.7% to 80.4 in October, according to the Westpac–Melbourne Institute index. The data reveals a stark divergence in sentiment following the RBA's recent rate hike, with post-decision survey respondents showing a collapse to 67.2 compared to 86.9 for those surveyed prior, signaling that monetary tightening is severely impacting household confidence.
Sentiment dropped significantly among those surveyed after the rate hike, falling to 67.2 compared to 86.9 for those surveyed before the decision.
The index fell 4.7% in October, moving from 84.4 down to 80.4.
Westpac is the sponsor of the consumer sentiment index, but the article does not discuss its financial performance.
Australian consumer confidence suffered a sharp decline in October as the Westpac–Melbourne Institute index fell to 80.4. The data reveals a stark divide in sentiment, with respondents surveyed after the RBA interest rate hike reporting a collapse in optimism compared to those polled earlier in the month.
The decline was primarily driven by the latest RBA interest rate hike, which caused sentiment among surveyed households to collapse from 86.9 to 67.2.