Australia's consumer confidence deteriorated in November as the interest rate hike added further pressure on family finances and reignited fears of rising cost of living and the prospect of further rate rises to come, survey results from Westpac showed on Tuesday.
The Westpac-Melbourne Institute Index of Consumer Sentiment fell to 79.9 in November from 82.0 in October. The score suggested that the index has returned to deeply pessimistic levels.
The sub-index tracking assessments of 'finances vs a year ago' gained 2 percent to 64.4. Meanwhile, the biggest hit was to the sub-index tracking expectations for 'finances next 12 months' plunged 7.3 percent to 87.0.
The 'time to buy a major household item' sub-index was down 1.4 percent to 81.3.
Interestingly, consumers were a little less pessimistic about near-term prospects for the economy, Westpac said. The 'economic outlook, next 12 months' sub-index climbed 2.7 percent to 80.5.
However, medium-term views on the economy have turned markedly more pessimistic. The 'economic outlook, next five years' sub-index dropped 6.4 percent to 86.5, hitting a 12-month low.
Further, data showed that the Westpac-Melbourne Institute Unemployment Expectations Index moved up 2.4 percent to 130.4 in November.
The 'time to buy a dwelling' index declined 3.7 percent to 73.2 in November. At the same time, the Westpac Melbourne Institute House Price Expectations Index declined 1.2 percent to 158.4.
A clear majority of consumers still expect prices to increase further over the next twelve months.
