‘Renewed concerns’ about economy sees consumer sentiment dip: Westpac
Share this article:
Consumers remain deeply pessimistic about the near-term outlook for the economy despite signs of improvement last month, says the major bank.
.
The Westpac Consumer Sentiment Index fell 1.8 per cent to 84.4 in March with concerns still worried about the outlook for the economy.
Westpac said while there were promising signs last month that the consumer gloom that has dominated the past two years was beginning to lift, the March survey indicates that progress is “slow at best”.
“Consumers are still deeply pessimistic and becoming more concerned about the economy’s near-term outlook,” the Westpac Consumer Sentiment report stated.
The index indicated renewed concerns about the economic outlook.
Four of the five sub-indexes recorded declines in March, with the biggest move being a 4.5 per cent fall in the economic outlook.
The next biggest decline was the next 12 months sub-index which offset just over half of the gain from February.
“Assessments of family finances and ‘time to buy a major household item’ also retraced some of their February gains, with all still well below long run average levels despite some modest net improvement over the last six months,” Westpac said.
“The only positive was around the ‘economic outlook, next 5 years’ sub-index which edged up 1.1 per cent to be at 94, slightly above the long run average of 92.”
The major bank said responses to the survey suggest that sentiment made a sharp turnaround following the RBA decision.
“Sentiment amongst those surveyed prior to the decision came in at a much stronger 94.9 compared to 79.3 amongst those surveyed post-decision – almost identical to the swing recorded in February,” the report said.
“The implication is that while few would have been expecting rates to be cut, many consumers may have been hoping for a more positive message on inflation and the interest rate outlook.
“However, the RBA Governor was still not ruling out the possibility of further rate rises following the March meeting.”
Westpac Group senior economist Matthew Hassan said the RBA’s commentary looks to be tempering consumer expectations for interest rates as well, with fears of rate hikes easing but few expecting rate cuts any time soon.
The Westpac-Melbourne Institute Mortgage Rate Expectations Index, which tracks consumer expectations for variable mortgage rates over the next 12 months, dipped 0.5 per cent to 120.9.
“The mix of responses shows 40 per cent of consumers are still bracing for rate increases, 22 per cent expect no change, 22 per cent expect declines and 15 per cent simply “don’t know,” said Hassan.
Hassan said consumers remain relatively comfortable about the outlook for jobs, however.
“The Westpac-Melbourne Institute Unemployment Expectations Index rose slightly, by 1 per cent, in February but at 128.1 is still in line with the long run average of 129,” he said.
“Readings remain consistent with a softening in labour market conditions rather than a sharp rise in job losses.”
Housing-related sentiment improved slightly overall for the month with another lift in assessments of time to buy and price expectations holding at optimistic levels.
Miranda Brownlee 27 March 2024 accountantsdaily.com.au
Lawrence Poletto, Principal of Poletto accounting is a Fellow of CPA Australia, holds a Bachelor of Commerce (JCU) and has over twenty years’ experience in Commercial and Public Practice.
With this experience, Lawrence can assist with all accounting and taxation needs to help clients start and grow their business. Lawrence deals with clients from all walks of life, working with diverse client base across a wide range of Industries. He builds strong trusted relationships and support clients in their times of need.
Lawrence can assist with all Tax and Accounting for small to medium business including assistance and guidance with setups, ongoing support including cloud-based accounting, budgeting, performance monitoring, support for loan applications and more.
Lawrence enjoys working with business owners who are seeking taxation, accounting, or business advice from a trusted professional. The more certainty he can provide his clients, the more they can focus on their business. Clients appreciate Lawrence’s professional and approachable manner.
At Poletto Accounting you will be one of only a limited group of equally important business clients and will always receive prompt, personal service.
We believe in Fixed price packages with easy payment option’s so you know exactly what you’ll be paying.
Contact Poletto Accounting to get a complimentary tax review, to see how we can help you and to get a second opinion on where you are with your business and taxes.
Business Tax
Poletto Accounting provides a full range of business accounting services for small to medium-sized businesses. We work collaboratively with business owners to meet your reporting requirements and regulatory payments and to help you achieve your financial and business goals.
We can assist through:
Income Tax Planning & Strategies
Preparation of all Business Income Tax Returns and associate Reporting
Goods & Services Tax (GST) review
BAS compilation and lodgement
Small business concessions calculations and advice
Liaising and negotiating with the Australian Taxation Office (ATO)
Assistance in formation and set-up of companies, trusts and partnerships
We can assist in setting up your new business, provide business advice and planning to give your Business its best chance of success. We can guide you on the following:
Decide on the most suitable structure for your business – sole trader, partnership, trust or company
Prepare a business plan, cashflow projections, budgets, and trading forecasts
We take care of all your legally required registrations such as registering a business name and applying for an Australian Business Number and Tax File Number. You may also need to register for GST and PAYG withholding, workers compensation and more and we’ll let you know if these apply to you
Complete registration procedures with Australian Securities and Investments Commission
Set up your software and bookkeeping systems
We offer Fast and easy setup for your new business.
Need help with your cloud accounting and Bookkeeping system? Not sure which program is best for your business? We can assist with all your cloud accounting needs, whether its Xero or other software.
Poletto Accounting is a Certified Xero Silver partner and can assist with:
Assistance with Cloud Software selection and implementation
Set-up and installation of XERO, MYOB, Quickbooks and other Accounting Packages
We can assist with recommending Bookkeeping Services that will suit your business
We also can work with your existing bookkeeper to ensure the most efficient and effective recording of your data and will improve the efficiency of the year-end compliance process
We can help give back time and resources you need to focus on growing and developing your business.
Secure File Transfer is a facility that allows the safe and secure exchange of confidential files or documents between you and us.
Email is very convenient in our business world, there is no doubting that. However email messages and attachments can be intercepted by third parties, putting your privacy and identity at risk if used to send confidential files or documents. Secure File Transfer eliminates this risk.
Login to Secure File Transfer, or contact us if you require a username and password.
Disclaimer
Every effort has been made to offer the most current, correct and clearly expressed information possible within this site. Nonetheless, inadvertent errors can occur and applicable laws, rules and regulations may change.
The information contained in this site is general and is not intended to serve as advice. No warranty is given in relation to the accuracy or reliability of any information. Users should not act or fail to act on the basis of information contained herein. Users are encouraged to contact Poletto Accounting or their own Advisor for Advice concerning a specific matter before making any decision.
Terms & Conditions
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nullam velit nisi, rutrum sed tristique vel, congue nec dui. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos himenaeos. Etiam non ante eu augue finibus gravida ac vel risus. Aenean fringilla cursus ipsum, mattis posuere enim dignissim vitae. Nulla facilisi.
Donec ac varius tellus. Integer ultricies placerat augue, vel cursus lorem euismod eget. In ex tellus, egestas eu dui eu, lobortis hendrerit est. Donec libero est, placerat et blandit non, fermentum a risus. Morbi aliquam lobortis mauris ut tincidunt. Aenean sollicitudin metus nec nulla lobortis consectetur.
Privacy Policy
Poletto Accounting is committed to providing quality services to you and this policy outlines our ongoing obligations to you in respect of how we manage your Personal Information.
We have adopted the Australian Privacy Principles (APPs) contained in the Privacy Act 1988 (Cth) (the Privacy Act). The NPPs govern the way in which we collect, use, disclose, store, secure and dispose of your Personal Information.
A copy of the Australian Privacy Principles may be obtained from the website of The Office of the Australian Information Commissioner at https://www.oaic.gov.au/.
What is Personal Information and why do we collect it?
Personal Information is information or an opinion that identifies an individual. Examples of Personal Information we collect includes names, addresses, email addresses, phone and facsimile numbers.
This Personal Information is obtained in many ways including correspondence, by telephone and facsimile, by email, via our website www.polettoaccounting.com.au, from your website, from media and publications, from other publicly available sources, from cookies and from third parties. We don't guarantee website links or policy of authorised third parties.
We collect your Personal Information for the primary purpose of providing our services to you, providing information to our clients and marketing. We may also use your Personal Information for secondary purposes closely related to the primary purpose, in circumstances where you would reasonably expect such use or disclosure. You may unsubscribe from our mailing/marketing lists at any time by contacting us in writing.
When we collect Personal Information we will, where appropriate and where possible, explain to you why we are collecting the information and how we plan to use it.
Sensitive Information
Sensitive information is defined in the Privacy Act to include information or opinion about such things as an individual's racial or ethnic origin, political opinions, membership of a political association, religious or philosophical beliefs, membership of a trade union or other professional body, criminal record or health information.
Sensitive information will be used by us only:
For the primary purpose for which it was obtained
For a secondary purpose that is directly related to the primary purpose
With your consent; or where required or authorised by law.
Third Parties
Where reasonable and practicable to do so, we will collect your Personal Information only from you. However, in some circumstances we may be provided with information by third parties. In such a case we will take reasonable steps to ensure that you are made aware of the information provided to us by the third party.
Disclosure of Personal Information
Your Personal Information may be disclosed in a number of circumstances including the following:
Third parties where you consent to the use or disclosure; and
Where required or authorised by law.
Security of Personal Information
Your Personal Information is stored in a manner that reasonably protects it from misuse and loss and from unauthorized access, modification or disclosure.
When your Personal Information is no longer needed for the purpose for which it was obtained, we will take reasonable steps to destroy or permanently de-identify your Personal Information. However, most of the Personal Information is or will be stored in client files which will be kept by us for a minimum of 7 years.
Access to your Personal Information
You may access the Personal Information we hold about you and to update and/or correct it, subject to certain exceptions. If you wish to access your Personal Information, please contact us in writing.
Poletto Accounting will not charge any fee for your access request, but may charge an administrative fee for providing a copy of your Personal Information.
In order to protect your Personal Information we may require identification from you before releasing the requested information.
Maintaining the Quality of your Personal Information
It is an important to us that your Personal Information is up to date. We will take reasonable steps to make sure that your Personal Information is accurate, complete and up-to-date. If you find that the information we have is not up to date or is inaccurate, please advise us as soon as practicable so we can update our records and ensure we can continue to provide quality services to you.
Policy Updates
This Policy may change from time to time and is available on our website.
Privacy Policy Complaints and Enquiries
If you have any queries or complaints about our Privacy Policy please contact us at:
