SYDNEY- A measure of Australian consumer sentiment fell for a third month in February as higher living costs from petrol to rent undermined finances and overshadowed an easing in coronavirus cases.
The Westpac-Melbourne Institute index of consumer sentiment released on Wednesday slipped 1.3 percent in February from January, when it dropped 2.0 percent.
The index was down 7.6 percent from February last year at 100.8, meaning optimists only just outnumbered pessimists.
“The most likely explanations for these elevated pressures on finances relate to: Omicron-related disruptions to activity and earnings at the start of the year; the rising cost of living; and the prospect of rising interest rates,” said Westpac chief economist Bill Evans.
The cost of petrol alone has climbed 15 percent over the past two months, while supply bottlenecks have pushed up goods prices and the cost of building new homes. Rents have also been on the rise, leading to a sharp fall in sentiment among tenants.
The impact was clear in the survey’s measure of family finances compared with a year ago which dived 9.3 percent, while the outlook for finances over the next 12 months fell 1.5 percent. — Reuters
