Commercial Market Focus – May 2016
The Westpac-Melbourne Institute Consumer Sentiment Index fell 4.0 points in April bringing the index to 95.1 well below the 100 level of optimism. The AiG-PMI for April also fell by 4.7 points to 53.4 reversing recent gains. The looming election and the 3 May budget quite naturally leads both consumers and business to be more cautious and with the long lead-up to the expected polling date of 2 July, the April-June quarter is shaping up to be one in which everyone sits on the sidelines. The Budget itself was quite uneventful except for ‘smokers’ and ‘retirees’ who bore the brunt of increased taxes and changes to superannuation rules.