Key facts
- Australian consumer sentiment index fell 5.2% to 84.4 in September.
- The decline reversed almost all of the previous month's 6.0% gain.
- Sentiment is down nearly 12% from a year earlier.
- Rising interest rates and fuel prices were identified as key drivers.
- Concerns about the housing market also impacted sentiment.
- Measures of family finances and economic outlook saw significant declines.
Australian consumer sentiment experienced a sharp decline in September, with the Westpac-Melbourne Institute index falling 5.2% to 84.4. This reversal erased nearly all of the previous month's gains and left sentiment nearly 12% lower than a year prior. Rising interest rates and fuel prices were identified as the primary drivers of this downturn, impacting consumers' views on their personal finances and the broader economic outlook. Data showing core inflation above forecasts fueled speculation that the Reserve Bank of Australia might implement further rate hikes. The measure of family finances saw a significant 9.2% drop, while assessments of the economic outlook and the opportune moment to purchase major household items also weakened considerably. Homeowners with mortgages were particularly affected, with sentiment among this group plummeting 13%, in stark contrast to a minimal 0.6% drop for renters.