The Melbourne Institute and Westpac Bank Consumer Sentiment Index for Australia dropped by 1.7 percent over a month earlier to 98.2 in September 2019 from 100 in August. The decline came in as people were cautious regarding the economy on the back of rising global headwinds and despite signs of revival in the housing market and the recent RBA interest rate cuts. The survey's measure of economic conditions for the next 12 months (92.6 from 95.5 in August), the gauge of family finances compared to a year ago (84.3 from 86.5) and personal finances expectations (96.9 from 99.1) dropped. In addition, the index of whether it was a good time to buy a major household item decreased to 123.3 from 126.9 in August. Meantime, the gauge of economic outlook for the next five years rose to 97.8 from 95.7, indicating that some of the difficulties currently facing the economy are expected to dissipate over time. Consumer Confidence in Australia averaged 101.34 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 98.00 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.