Australian consumer confidence steady in July

A gauge of confidence among Australian consumers held steady this month, as people are now more optimistic on the economic outlook, even despite fears about their personal finances. The survey conducted by the Melbourne Institute and Westpac Bank showed that a measure of consumer sentiment edged by 0.05% in July from June, when it advanced 4.7%. That left the index 3.0% higher than in the same month a year earlier at 102.1, indicating optimists still slightly outnumber pessimists within the country. At the same time, the component reflecting family finances dropped a steep 5.6% in July on an annual basis, while the measure tracking expectation on the economic growth for the next five years soared 9.2%. Recent data is painting a complex picture of state confidence, as even despite the improvement, many consumers are expecting their family finances to weaken in the upcoming months. 

Earlier this month, the Reserve Bank of Australia left its monetary policy on hold, saying the depreciation in Aussie may continue as well as rock-bottom borrowing costs are likely to bolster the local economy further. For the second consecutive month the RBA policy members kept the benchmark interest rate at a record low of 2.75%, although many economists are still betting on another rate-cut before Christmas.