SYDNEY- Australian consumer sentiment took a step back in December as concerns about the economic outlook outweighed an improvement in people’s own finances, a survey showed on Tuesday.
The Westpac-Melbourne Institute index of consumer sentiment fell 2.0 percent in December, unwinding a little of the sharp gains seen over the previous two months. The index is still up 13 percent on a year ago but at 92.8 showed pessimists again outnumbered optimists.
Westpac Senior Economist Matthew Hassan said the pullback was likely influenced by a disappointing reading on economic growth released in early December.
As a result, the index measuring the economic outlook for the next 12 months slid 9.6 percent and the outlook for the next five years dropped 7.9 percent.
In contrast, the measure of family finances compared to a year ago rose 6.9 percent, still benefiting from tax cuts introduced from July.
The biggest decline came in those with mortgages, reflecting doubts about when borrowing rates might finally fall.
