Consumer sentiment has tracked up marginally in October, with experts calling the findings a disappointing result for the economy. 

 

The Westpac-Melbourne Institute Index of Consumer Sentiment recorded a 1 per cent increase in October, from 98.2 per cent in September to 99.2 per cent this month.

 

“It is of some concern that the Consumer Sentiment Index is still significantly below its level of last November following the first 25bp cut in the overnight cash rate. Since that time the Reserve Bank has cut the overnight rate by a further 125bps but the index is now 4.1% lower,” Westpac’s Chief Economist Bill Evans said.

 

“Secondly, we saw a surprise fall in the unemployment rate from 5.2% to 5.1% reported for August. In that regard, however, we have seen consistent evidence from consumers’ unemployment expectations that despite a low print on the unemployment rate the vast majority of consumers have been expecting and continue to expect unemployment to rise.”

 

The October results mark the eighth consecutive month the index has trended below 100, and the fourteenth in the last sixteen that the index has been below 100.