Consumer confidence slipped in December, a survey of households suggests, with pessimists continuing to outnumber optimists as concerns about job losses rose to a two and a half year high.
The Westpac-Melbourne Institute consumer sentiment index released on Wednesday fell 1.9 per cent to 95.1 points, remaining below the 100-point neutral mark.
“This poor performance of the index is broadly consistent with the sharp deterioration we saw in consumer spending in the September quarter as reported in the national accounts and the early evidence of weak retail conditions for the start of the December quarter,” Westpac economist Bill Evans said.
The survey’s unemployment expectations index was up 1.1 per cent in December and 14.1 per cent higher than during the same month last year, indicating more people anticipate unemployment levels will increase in the next 12 months.
“The readings are consistent with a slowdown in jobs growth and steady increases in the unemployment and underemployment rates over the year ahead,” Mr Evans said.
Westpac analysts forecast Australia’s unemployment rate – currently 5.3 per cent – to rise to 5.6 per cent during the first half of 2020.
AAP
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