Australian Consumer Confidence Slumps as Prices, Rates Take Toll

  • Westpac index has shown pessimists in ascendancy for 2 years
  • First-quarter CPI data April 24 to be key for RBA rate outlook

Australia’s consumer confidence declined in April as persistent inflation and interest rates at a 12-year high continued to squeeze households.

Photographer: Brent Lewin/Bloomberg
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Australia’s consumer confidence declined in April as persistent inflation and interest rates at a 12-year high continued to squeeze households, leaving them gloomy about the economic outlook.

Sentiment dropped 2.4% to 82.4 points, indicating pessimists heavily outweigh optimists as a reading of 100 is the dividing line, a Westpac Banking Corp. survey showed Tuesday. The index has held below 100 for more than two years.