The Westpac Melbourne Institute
Index of Consumer Sentiment fell by 5.1 per cent in April from 110.5 in March
to 104.9 in April.
The previous 2 months had risen 9.9%
so some softening was expected but not such a significant decline. Westpac
Chief Economist said it was a surprising result and indicates the fragility of
consumer confidence. According to Evans the reasons behind the April fall are
best assumed to be around global concerns and an associated correction in the
share market.
Uncertainty surrounding Europe’s
economic recovery might be given as an excuse for declining consumer confidence
but it can be assumed that Australia’s looming federal election, and our
rudderless leadership (pun not intended) hasn’t helped.