Household sentiment in Australia has fallen to a level last seen around 50 years ago. The reason: a temporary cut in fuel tax had only a short-lived effect, and falling property prices are unsettling homeowners. This emerges from the monthly consumer survey by Westpac Bank, reported by The Guardian.
The survey shows a sharp rise in pessimism about family finances. The topics of “household and taxes” and “inflation” top the agenda for respondents. Westpac economist Matthew Hassan said the June responses showed a particularly high recall of news on these issues. 85 percent of consumers rated inflation reports as negative, while for household and tax topics the figure was nearly 70 percent.
The cost of living “returned with a vengeance” in June, Hassan said. Australians are clearly bracing for more bad financial news. Only 4.5 percent of respondents considered property investments the smartest way to save – the lowest since the survey began in 1974, compared with a long-term average of 24 percent. Hassan attributed this to price falls in some markets, actual and expected interest rate hikes, and major tax policy changes for investors in the federal budget.
Source: www.theguardian.com
