The Melbourne Institute and Westpac Bank Consumer Sentiment Index for Australia declined by 4.1 percent month-over-month to 96.5 in July 2019 from 101.3 in the previous month. It was the lowest reading since August 2017, as concerns regarding the Australian economy outlook and prospects for family finances outweighed any near term support from the prospect of lower interest rates and tax relief. The survey's measure of economic conditions for the next 12 months slumped 12.3 percent, the weakest level in four years, and the index of family finances over the next 12 months tumbled 8 percent, moving back into net pessimistic territory for the first time since late 2017. Also, the economic outlook for the next five years fell by 6.7 percent, amid rising fears of job loss (5.8 percent). Meanwhile, the gauge of family finances compared to a year ago advanced 3 percent to a five-month high and the index of whether it was a good time to buy a major household item rose 3.6 percent. Consumer Confidence in Australia averaged 101.35 Index Points from 1974 until 2019, reaching an all time high of 123.94 Index Points in May of 2007 and a record low of 64.61 Index Points in November of 1990.
Consumer Confidence in Australia is expected to be 102.00 Index Points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Consumer Confidence in Australia to stand at 102.00 in 12 months time. In the long-term, the Australia Consumer Confidence is projected to trend around 106.00 Index Points in 2020, according to our econometric models.