Consumer outlook dims

Chris Zappone | July 9, 2008 - 1:50PM Consumer sentiment fell to a 16-year low in July, as rising petrol prices erode confidence about the economic future. The monthly Westpac-Melbourne Institute survey shows consumer sentiment fell 6.7% in July to 79 points down from 84.7 points in June, well below the 100 points mark indicating that pessimists outnumber optimists. The reading is down for the sixth straight month as consumers grapple with runaway petrol prices, and is now at its lowest level since January 1992, when consumers were still shaking off the effects of a two-year recession. ''The most probable explanation for the sharp fall in the index is likely to be petrol and oil prices,'' Westpac chief economist Bill Evans said in a statement. ''Average petrol prices rose by 3.4% since the last survey to be up 15.3% over the... [read full story]