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Australia's Consumer Confidence Weakens In July

Australia's consumer sentiment deteriorated in July due to the resurgence in coronavirus cases, survey data from Westpac showed Wednesday.

The Westpac-Melbourne Institute Index of Consumer Sentiment fell 6.1 percent to 87.9 in July from 93.7 in June.

The current drop in confidence reversed all of last month's impressive gain, taking the index back to the weak levels seen in May.

Among sub-components, the 'economy, next 12mths' sub-index recorded the biggest decline, slumping 14 percent in July. Similarly, the 'economy, next 5yrs' sub-index logged a sharp 10.3 percent fall.

The index for family finances over next 12 months slid 6.7 percent consistent with the more difficult path ahead.

However, the family finances versus a year ago sub-index ticked up slightly, rising 2.5 percent. This reflects significant 'reopening boosts' in other states and government income support packages.

Further, the pull back in buyer sentiment was also mild, the 'time to buy a major item' sub-index dipped just 2.1 percent from previous month.

The Westpac Melbourne Institute Unemployment Expectations Index surged 12.1 percent from June.

The Reserve Bank of Australia's Board next meets on August 4. The bank will maintain its current highly stimulatory stance and continue to commit to steady policy for the foreseeable future, Bill Evans, chief economist at Westpac, said.

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