Australia Westpac consumer confidence dropped -9.5% to 79.5 in August, down from 87.9. Westpac said “the scale of the fall comes as a major surprise” and it’s now back near the “extreme low” of 75.6 made in April. Nevertheless, that could prove to be a “significant overreaction” to the return to lockdown.
Westpac expects RBA to maintain current policies in the upcoming September 1 meeting. The next major event would be the Commonwealth Budget in October 6. As the consumer sentiment survey highlights the uncertainties around the current outlook, Westpac expects the government commit to providing “generous ongoing support the the economy”.
