Monthly consumer sentiment survey, October result comes in at 92.8
- September was 98.2 (below 100 indicates pessimists > optimists)
- down 5.5% m/m and down 8.6% y/y
Dreadful result, its lowest since July of 2015
says WPAC 9from a much longer note):
- This result will be of some concern to the monetary authorities.
- Typically, an interest rate cut boosts confidence particularly around consumers' expectations for and assessments of their own finances. In this survey these components of the Index fell by 3.7% and 4.9% respectively. T
- his may be because, despite the rate cut, assessments for the economy overall plunged by 6% (the twelve month outlook) and 9.1% (the five year outlook).Consumers are looking behind the reason for the rate cut and, arguably, the absolute level of rates and getting nervous.
