The Westpac consumer sentiment index fell for a ninth straight month.
Consumer sentiment fell 3% in August, with consumers deeply pessimistic about rising interest rates and inflation, which is weighing on the outlook for households.
Westpac chief economist, Bill Evans said the rapid decline in sentiment pushed household confidence to levels similar to the lows seen at the start of the COVID pandemic and the global financial crisis.
However, he said they were still well above the lows reached in the recession of the early 1990s.
The Westpac-Melbourne Institute Index of Consumer Sentiment measures changes in the level of consumer confidence in economic activity.
It comprises five indices that reflect consumers? evaluations of:
- Their household financial situation over the past year and the coming year, anticipated economic conditions over the coming year and the next five years, and
- Buying conditions for major household items.
Consumers are also surveyed about buying conditions for cars and dwellings, the wisest place for savings, and economic news recall.