Westpac Consumer Confidence for January

  • -3.5% m/m (prior -0.8%)
  • +4.3% y/y
  • Index at 97.3, lowest level since September 2015

Comments from Westpac Chief Economist Bill Evans (bolding mine):

  • With limited domestic news during the holiday season consumers appear to have been mainly impacted by the spate of negative news on the international front and the spill over effect on financial markets
  • The survey has provided an early signal that the pessimism which has dominated the housing market in the second half of 2015 may be easing

And, his outlook on the Reserve Bank of Australia:

  • Westpac firmly of the view that the RBA will remain on hold throughout the whole of 2016
  • We retain that view despite some concerns from this survey that consumers may slow their spending in response to this current global uncertainty

On the AUD:

  • The Australian dollar has adjusted further providing the important ongoing boost to Australia's competitiveness which is now assisting the economy's adjustment as the mining sector slows

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Note: The Reserve Bank Board meets on February 2