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.