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Australian consumer confidence falls in March: report

Xinhua, March 11, 2015 Adjust font size:

Consumer confidence in Australia has fallen in March triggered by rising fuel prices, according to a report released on Wednesday.

The Westpac-Melbourne Institute Index of Consumer Sentiment dropped 1.2 percent in March to 99.5, compared to 100.7 in February.

Any measure below 100 means there are more pessimistic households than optimistic ones.

The fact the Reserve Bank of Australia (RBA) did not further cut interest rates, as some expected, added to lower consumer confidence.

"Some softening in sentiment was always likely in March given the big lift last month following the RBA's surprise 25-basis- point rate cut," Westpac senior economist Matthew Hassan said in a statement.

"Interest rate moves often generate a big initial reaction that dissipates over time."

Sharp rises in petrol prices of up to 14 Australian cents a liter, and weaker economic growth figures also contributed to the lack of confidence.

The report said that this confidence dip has made people reluctant to buy a major household item.

"It is very likely that at least part of this decline is a reaction to recent falls in the Australian dollar and the impact that is expected to have on the cost of imported goods," Hassan said. Endi