Australian Consumer Sentiment Hits Two Year Low in April
The Westpac index fell 12.5 percent to 80.1 in April. Rising fuel costs and interest rate hikes are putting heavy pressure on Australian household finances.
Consumer confidence in Australia has plummeted to its lowest level in more than two years, as households react to escalating geopolitical tensions and persistent economic pressures. A recent survey conducted by WESTPAC BANKING CORP and the Melbourne Institute revealed that the headline consumer sentiment index fell by 12.5% to a reading of 80.1 in April. This figure indicates that pessimists significantly outnumber optimists, marking the sharpest monthly decline since the start of the COVID-19 pandemic.
The downturn is largely attributed to anxieties surrounding the international conflict involving the United States, Israel, and Iran. These tensions have led to a visible spike in global fuel prices, further complicating the domestic inflation outlook. Matthew Hassan, the head of macro-forecasting at Westpac, highlighted the severity of the situation for local households.
