On Wednesday, the Westpac Banking Corp released the Australian consumers sentiment survey result. That was increasing from 104.1 to become 106.2 in September.
It must be known that the index which is above 100 reflects the optimism of most consumers to the whole economy condition. That is what happening right now.
The rise in sentiment index this month is in line with the improving consumer optimism in several Australian states. It is shown by several data made so far.
Despite the risk of an extension of the COVID-19 lockdown in the near term, consumer confidence in NSW rose 5.3 per cent to 106.4. Meanwhile, the Victorian consumer sentiment was steady.
The Vaccination Programs are Succesfull
The sentiment in Victoria was 104.1 so far and it is steady. The state of Queensland jumped 8.4% more to 111.6, due to the end of the region's lockdown policy in August.
The rise in Australian consumer sentiment is actually inseparable from the improvement of the vaccination programs carried out in recent times. A Lot of people have been vaccinated.
For About 57 percent of respondents who had received at least the first dose of the vaccine showed a confidence index of 103.7. The rests show a different result.
Meanwhile, another 27 percent of respondents who had not been vaccinated at all but were willing to be vaccinated showed a confidence index of 121.6. The result is quite far different.
The AUD/USD Continues It’s Decline
Based on the further survey done by Westpac, the increase happened on almost all of the sub – index consumers sentiment. The family financial condition rose from 91.9 to become 93.5.
That was happened in a year – on – year basis. Meanwhile, the short – term economy prospect index increased from 100.4 to become 105.0. The economy outlook for 5 years also increases.
It is from 109.2 to 114.5 so far. The improving Australian consumers sentiment data yesterday morning failed to support the AUD movement versus USD in the market.
Vice versa, the Australian dollar is weakening and now it is in the level of 0.7305. The AUD / USD pair pressure comes from the global risk aversion triggered by the spread of the coronavirus.
It is especially the delta variant in the Fujian Province, China, in this last one week. Meanwhile, the National statistic bureau of that country released the retail sales data.
The Retail Sales Data in China
Based on the data, the retail sales slipped from 8.5 percent to become 2.0% year – over – year in August. That number is far from the rising expectation of 7.0% and brings another thing.
That makes the economy slow down possibility can be happened in the third quarter this year. The Worsening Retail Sales data was also followed by the release of Industrial Production.
The industrial output report slowed from 6.4% to 5.3%, failing to meet the expectations of a 5.8% increase. The slump in catering industry revenue of 4.5% was the culprit behind the decline.
Meanwhile, the fixed asset investment data in August also slowed. Unmitigated, data that can measure capital expenditure is only up 8.9 percent year-to-date from the previous year.
The China’s Economy and Its Slow Down Possibility
The gain was worse than the projected 9.0 percent increase and slipped considerably from july's 10.3 percent gain. The economu report in China was dissapointing so far.
It is possible that their GDP DATA in the third quarter will be lower than the second quarter release of 7.9%. This disappointing outlook cannot be separated from the delta variant spread.
It is especially in the Fujian province. According to a report from local authorities, there was a surge of 51 new cases on Tuesday, bringing the total number of cases in the past week to 186.
The representative of the national bureau institution said that it is caused by the complicated international condition, the domestic coronavirus cases increase, and the nature disaster.
