Westpac consumer sentiment sub-indices paint mixed sentiment

Today Westpac consumer confidence was released from Australia, which painted a mixed picture through its sub-indices, despite drop in headline figure.

• Headline consumer sentiment index dropped by -3.2% in July to 92.2 from 95.3 in June. According to Westpac, Index is now in range, where pessimism outweigh optimism. Index has remained below 100 for 15 out of last 17 months.

• Tensions in Greece and turmoil in Chinese stock market might also have contributed to the drop. So August might see a rise in optimism if the situation settles down.

Sub-indices paints a mixed picture -

• Family finances vs a year ago dropped by -10.4% in July to 82.8 from 92.4 in June. This clearly shows the stress households are passing through due to economic turmoil.
  
  
• Pessimism among general public continue to persist. Economic condition for next 12 months dropped -10.5% to 76 for July from 84.9 in June. Economic conditions for next 5 years dropped by -4.4% in July to 80 from 83.6 in June.
  
  
• However, optimism was seen regarding family finances over next 12 months. Index rose by 6.9% to 100.9 from 94.4 in June.
  
• Housing sector sentiment again showed mixed picture, suggesting that there could be heavy foreign buying (from China) into Australia's housing sector. Time to buy dwelling dropped by -15.4% in July to 94.8 from 112.1 in June. This index has reached lowest point since 2010. However, House price expectation index rose by 8.2% to 145.9 from 134.9 in June.
  
  
• Despite drop in optimism fewer now expect employment situation to deteriorate. Unemployment expectation index dropped by -1.3% in July to 150.8 from 152.8 in June.

Aussie dollar is currently trading at 0.747 against dollar, up 0.35% faor the day so far.