May 21, 2014

Consumer sentiment might become the government’s real budget crisis

Consumer sentiment has responded negatively to the budget, but it remains to be seen if that translate into real economic consequences, Glenn Dyer and Bernard Keane write.

With a big fall in this morning’s Westpac-Melbourne Institute consumer sentiment index, that’s two pieces of evidence that consumer confidence has taken a big hit in the federal budget process.

Two weeks ago we saw the first evidence that the surge in retail sales that marked the beginning of the year had faded, with March sales data showing just a rise of just 0.1% in seasonally-adjusted terms. That period coincided with a stepping-up of the government’s pre-budget rhetoric of fiscal rigour and budget crisis.

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7 thoughts on “Consumer sentiment might become the government’s real budget crisis

  1. Andybob

    If only there had been some way of knowing …

  2. teraluno mercur

    I guess if they dont have a “budget crisis” they can always create a real one . They will take the country into a recession mark my words.

  3. pinkocommierat

    They’ve certainly taken my household into recession. I won’t forget this, and I live in a marginal electorate.

  4. graybul

    Oh the irony of Bernard’s last sentence! ie ‘be careful of what you wish for’ Smoking Joe.

  5. klewso

    It would be interesting to see how this government handles a real crisis?
    It was so easy sh*it-canning everything Labor did?

  6. Cleo Race

    Why hasn’t NewsCorp’s tax payout of $882M in February made it back into these budget discussions?

  7. AR

    Petards & hoisting spring to mind, can’t imagine why.

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