Australia's consumer confidence rose slightly in June despite the Reserve Bank of Australia's official cash rate cut early this month, a key survey revealed Wednesday.
The Westpac-Melbourne Institute Index of Consumer Sentiment increased by 0.3 percent in June to 95.6 from 95.3 in May.
"This is a disappointing result," Westpac's Chief Economist Bill Evans said. "It follows a second consecutive cut in the official cash rate by the Reserve Bank".
Sentiment has risen only 1.1 percent from its April level and remains 1.7 percent below the level recorded in October last year despite a 125 basis points reduction in the cash rate that has brought the average standard variable mortgage rate down by nearly 1 percent, the economist said.
Mr Evans said a new element of the study showed how domestic and international economic factors were affecting people's optimism.
"The June survey included additional questions on news categories (participants) recalled and whether news was assessed to be favourable or unfavourable. The results show negative news around the economy and international conditions dominated", he said.
by RTT Staff Writer
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