The federal budget has damaged consumer confidence, with more people feeling pessimistic about the economy than optimistic, a survey on Wednesday showed.
Westpac’s monthly consumer sentiment index fell by 6.8% in May to 99.7, its lowest point since August 2011.
A reading below 100 points indicates there are more pessimists than optimists on the state of the economy.
The survey was conducted with the Melbourne Institute between May 12 and 17 following the budget announcement.
"The sharp fall in the index is clearly indicating an unfavourable response to the recent federal budget," Westpac chief economist Bill Evans said.
The Westpac survey's result reflects that of the ANZ-Roy Morgan index, which showed consumer confidence had dropped 14% since April when leaks about government spending cuts and the debt levy started to appear.
The ANZ survey, released on Tuesday, was conducted on the weekend after the May 13 budget.
One of the questions in the Westpac survey asked about the impact of the budget on people's finances.
More than 59% of respondents said the budget would make it tougher on family finances in the next 12 months, while just 3.1% said it would improve.
No comments:
Post a Comment