CONSUMERS IN AUSTRALIA LOSE THEIR
OPTIMISM.
by MEDIA CONTACT RESOURCES, INC.
One of the measures Australians use to probe consumer sentiment is
an index compiled from regular surveys by the Westpac-Melbourne
Institute where the number 100 separates consumer optimism (above 100)
from consumer pessimism (below 100).
The British Broadcasting Corporation (BBC) recently reported that
in February 2005 the index fell below the demarcation.
Australian consumers have been spending for quite some time,
supporting the growth of their economy and projecting a general feeling
of prosperity.
Reuters recently reported from Sydney that Australia's central
bank raised interest rates for the first time in over a year. The bank
was concerned that a tight labor market and higher wage demands would
put pressure on inflation. It was also concerned that some sectors of
Australia's industrial sector were reaching output capacity.
Industry has expanded in Australia for the past 14 years.
Australia has largely been spared the effects of the general global
slowdown of the past few years. The economy also seems to have weathered
a drought the BBC called "crippling". The decline in cons
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