The latest Westpac Melbourne Institute Index of Consumer Sentiment increased in June to 95.6, a 0.3 per cent increase from 95.3 in May.
Westpac chief economist, Bill Evans, said although the figure is higher it is still disappointing.
“This is another disappointing result. It follows a second consecutive cut in the official cash rate by the Reserve Bank. Sentiment has risen only 1.1 per cent from its April level and remains 1.7 per cent below the level recorded in October last year despite a 125bp reduction in the cash rate that has brought the average standard variable mortgage rate down by nearly 1 per cent,” he said.
Clearly other factors are dominating rates in the minds of consumers, those factor are concerns about the domestic economy and international conditions.”
In positive news for retailers, one of the sub-indexes looks at whether now is a good time to buy a major household item and the response was a very positive 7.5 per cent higher than previously.
Evans believes there will likely be a further interest rate cut at the next meeting in July.
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