Consumer confidence prediction for 2017
Consumer confidence took a beating through 2016 following Brexit and the US election. According to Westpac, consumer confidence appears to have remained at a consistent low since April last year and this is not set to greatly improve over 2017. The confidence index fell by 3.9% in December and has only risen by 0.1% in January. Even following interest rate cuts, a cumulative gain in Australian equities and a modest growth in job creation, consumers continue to be more greatly effected by the negative news such as the economy contraction of 0.5% late last year.
Family finances are down by approximately 16% from the February peak in 2016 and expectations of family finances are down by 3.7% since the August 2016 peak. There continues to be a doubtful perspective on job prospects with the index remaining below long-run average and the House Price Expectations index is still on the rise.
Even though indicators are pointing to a boost in the economy growth rate from 1.8% to 3.0% in 2017, consumer sentiment is still shaken and may need some nurturing before consumption and investment move back to a healthy rise.
See full and original article at Business News Australia.