Australia's consumer confidence levels "crashed" in March, marking the largest monthly decline since the COVID-19 era and striking low levels not seen since 2023, reported the Westpac-Melbourne Institute on Tuesday.
The Westpac-Melbourne Institute Consumer Sentiment Index fell to 80.1 in April from 91.6 in March, as consumers faced fuel bills and higher interest rates, said the Institute.
In April, the "spike in fuel prices following the US-Israel war on Iran and a further 25 basis point interest-rate increase (by the Reserve Bank of Australia) are again putting finances under intense pressure," advised the Institute.
Readings above 100 on the Australian consumer index point to optimism, while below that level suggest pessimism.
In April, Australian fears of job loss rose to a near six-year high, while consumers became much less bullish on the house-price outlook as well, according to the monthly Institute survey.
After generally rising since 2022, the Australian consumer sentiment index is back near historical lows, "albeit above the extremes seen at the onset of the (COVID-19) pandemic and during the recessions of the early 1990s and 1980s," said the Westpac-Melbourne Institute.
The "time to buy a major household item" sub-index in April fell to 83.3 from 98 in March, another sign of waning consumer confidence.
Household outlooks in April also soured. "Near-term expectations for the economy and family finances also deteriorated sharply, suggesting consumers see little prospect for improvement and are bracing for more difficulties," reported the Institute.
The Westpac-Melbourne Institute Consumer Sentiment survey polls about 1,200 Australian adult consumers (or households), each month.