Australian consumer sentiment remained subdued in September, as worries about the broader economy and job market overshadowed easing concerns over interest rates, according to a survey released on Tuesday.
The Westpac-Melbourne Institute Index of Consumer Sentiment edged down by 0.4% from August, following a 2.8% rise the previous month.
With an index reading of 84.6, pessimism continues to dominate, signaling that consumers remain cautious.
While inflation and high interest rates were less of a concern compared to previous months, growing unease about the economy has emerged.
The survey showed a 2.6% decline in the index measuring the economic outlook for the next 12 months, alongside a 1% drop in the five-year outlook. Additionally, concerns about job security have heightened.
Despite the introduction of broad income tax cuts in July designed to ease household financial pressure, the survey's "time to buy a major household item" index remained stagnant at 82.6, well below its long-term average of 124.2. This suggests the tax cuts have yet to stimulate significant consumer spending.
Recent data shows Australia’s GDP growth remained weak in the June quarter, while inflation stayed persistently high. The Reserve Bank of Australia has warned that sticky inflation could trigger further interest rate hikes, a scenario that continues to worry consumers.
There were some positive indicators in the survey. The measure of family finances compared to a year ago increased by 1.2%, and the outlook for finances over the next 12 months saw a slight rise of 0.2%. However, these improvements were outweighed by broader economic concerns.
