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  • Consumer sentiment down in Western Australia

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    Consumer sentiment down in Western Australia - reiwa.comConsumer sentiment in Western Australia dampened further to 87.5 in September 2015, down 5.2 per cent from 92.3 in the previous month.

    The decline in sentiment followed recent news surrounding weaker mining production and subpar economic growth.

    While consumption expenditure has been well placed, economic growth has been below trend, with GSP (gross state product) in WA forecast to grow by two per cent in 2015-16.

    Labour market conditions remain soft on the back of waning unemployment in the mining industry (down 12 per cent for 2014-15), primarily due to significant contraction in metal ore mining.

    The trend unemployment rate rose to 6.1 per cent over August from six per cent in the previous month, although more volatile seasonally adjusted estimates indicate improvement – down to 6.1 per cent from 6.4 per cent in July.

    The 15 per cent decline in value for merchandise exports led by a 28 per cent fall in iron ore exports also had a negative impact in the state’s mining industry, weighing down on overall sentiment.

    All five index components declined over August, primarily due to increased pessimism surrounding family financial conditions compared to a year ago and the affordability of household goods – down 14.5 per cent and 12.7 per cent respectively.

    Expectations for financial conditions in the next 12 months also fell by 1.3 per cent over the same period.

    Although sentiment reflecting economic conditions in the next twelve months fell three per cent, there was an eight per cent increase in confidence for the economic outlook in the next five years.

                                               Index Western Australia National
    Current month (Sep-15) 87.5 93.9
    Previous month (Aug-15)  92.3  99.5 
    Previous year (Sep-14)  105.7  94.0 
    Five years ago (Sep-10)  106.1  113.2 
    Month change  -5.2%  -5.6% 
    Year change  17.2%  -0.1%