Australian Consumer Confidence Drops to 1990s Recession Levels
Australian consumer sentiment fell 4.7% in October as rising interest rates and high gasoline prices drive a cost-of-living crisis.
Australian consumer confidence declined sharply in October, with the Westpac-Melbourne Institute consumer sentiment index falling 4.7% to 80.4 from 84.4 in September. This drop represents one of the 40 worst readings since the survey began in the early 1970s and the most severe period of weak sentiment since the recession of the early 1990s.
Matthew Hassan, head of Australian macro-forecasting at Westpac, attributed the downturn to persistent cost-of-living pressures and rising interest rates. The decline follows the Reserve Bank of Australia's fourth interest rate hike of the year. Additionally, conflict in the Middle East has pushed national average weekly gasoline prices above 2.30 Australian dollars per liter, marking a nearly 25% increase since the start of the year.
Survey data indicates that household concerns remain focused on living costs and interest rates rather than the employment or insolvency issues typically associated with a recession.
