Monthly consumer sentiment survey, October result comes in at 92.8

  • September was 98.2 (below 100 indicates pessimists > optimists)
  • down 5.5% m/m and down 8.6% y/y

Dreadful result, its lowest since July of 2015

says WPAC 9from a much longer note):

  • This result will be of some concern to the monetary authorities.
  • Typically, an interest rate cut boosts confidence particularly around consumers' expectations for and assessments of their own finances. In this survey these components of the Index fell by 3.7% and 4.9% respectively. T
  • his may be because, despite the rate cut, assessments for the economy overall plunged by 6% (the twelve month outlook) and 9.1% (the five year outlook).Consumers are looking behind the reason for the rate cut and, arguably, the absolute level of rates and getting nervous.