The Westpac-Melbourne Institute Index of Consumer Sentiment plunged 17.7% to 75.6 in April from 91.9 in March. This is the single biggest monthly decline in the forty seven-year history of the survey, taking the Index beyond GFC lows to levels only seen during the deep recessions of the early 1990s (64.6) and early 1980s (75.5). - Bill Evans, Chief Economist and Spokesperson for Westpac.
While the drop in confidence this month is severe, it could well have been worse. Despite the bleak and threatening backdrop, Australia’s pandemic experience to date has been much less debilitating than that of the hardest hit areas abroad. The number of cases is high but has not overwhelmed Australia’s health system, with recent evidence showing a clear slowing in new cases that indicates policy measures are working to contain the spread. These developments give some support to our view that the Australian economy will lift in the December quarter following three consecutive quarters of economic contraction. - Bill Evans, Chief Economist and Spokesperson for Westpac
