Political turmoil and mortgage hikes smashed consumer confidence: Westpac

  • Sep 12, 2018 AEST
  • Team Kalkine
Political turmoil and mortgage hikes smashed consumer confidence: Westpac

Political instability and increased mortgage rates have shaken the consumer confidence, reads Westpac’s consumer sentiment report published today, i.e. 12 September 2018.

The Westpac-Melbourne Institute consumer sentiment index declined 3% to 100.5 in September 2018 from 103.6 last month. The index floating just above the 100 level represents the weakest sentiment reading since November 2017.

Consumer sentiment amongst households with a mortgage has recorded a drastic decline of 5.6%. This comes after three of the four major banks recently lifted their standard variable mortgage rates by 14-16bps with two of these hikes announced during the survey week.

Although all index components recorded a downturn in September 2018, ‘economic outlook of next 5 years registered the biggest decline of 5.8% to 95.2. The ‘time to buy a dwelling’ index also fell 4.8%, reflecting the rise in mortgage rates. Beside mortgage interest rates hike, household budgets have been under the persistent pressure from slow growth in wages, declining house prices in Sydney and Melbourne and the rising cost of petrol.   

Following the leadership change in August, the survey has seen divergent sentiment response among voters’ group. Those identifying as Coalition voters reported a 6.4% fall, ALP voters recorded a 4% rise and those without a stated preference reported a 6.6% drop in sentiment.

The bright spot in the September survey was a notable improvement in unemployment expectation across all the major states. As the Westpac Melbourne Institute Unemployment Expectations Index fell 6.6% in September to be 9.6% lower than a year ago. The data also revealed that consumers have gained confidence in the labor market on the back of significant improvement coming in the mining states.

However, in response to question on ‘wisest place for savings’, 64% of consumers favor safe options of bank deposits, superannuation or debt repayments. While just 10% favored real estate and 8% nominated shares.

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”

ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.

Click here to get your free report.


Disclaimer

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK