Australians worried on GDP outlook

AUSTRALIAN consumers continue to have a pessimistic outlook on the economy despite positive indicators, according to a survey published yesterday.

The Melbourne Institute index of consumer sentiment fell by 1.6 per cent in April to 94.5 points, following a five per cent drop in March. This is its lowest reading since last August, despite robust income growth and low unemployment.

Respondents were concerned about the future of their family finances but this was contradicted by respondents’ improving view of conditions over both the short and long-term.

Analysts believe the Reserve Bank of Australia will now be under increased pressure to drop base interest rates.