Australian consumer confidence falls in November

According to the Westpac-Melbourne Institute, Australia’s consumer confidence index fell in November due to rising interest rates and inflation. This affects the financial outlook of the household sector and economic conditions even if actual spending is not yet in line with this assessment.

According to the report, the consumer confidence index fell 6.9% in November from October and dropped nearly 26% year over year to 78.0, the lowest level since COVID-19 began to spread.

An index below 100 indicates that the number of consumers with a negative outlook on the economy outweighs the number of consumers with a positive outlook.

The survey coincides with a weekly survey by the Australian and New Zealand Banking Group (ANZ), which showed a 1.5% drop in confidence last week. And inflation expectations rose to 6.8%, the highest level since the report began in 2010.

Rising inflation has forced the Reserve Bank of Australia (RBA) to raise interest rates to 2.75% since May.

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