Australian consumer sentiment falls

A measure of Australian consumer sentiment slumped in May to the lowest in over two years as households fretted about their own finances a week after the government unveiled a string of spending cuts and new levies in a tough fiscal budget. The survey of 1,200 people by the Melbourne Institute and Westpac Bank showed the index of consumer sentiment fell a seasonally adjusted 6.8 percent in May from April, when it rose 0.3 percent. The index reading of 92.9 was down 4.8 percent on May last year. A reading below 100 means pessimists exceed optimists.
Respondents were also less upbeat on the outlook for the economy over the next 12 months, with that index sliding 14.2 percent in May from April. "The sharp fall in the index is clearly indicating an unfavourable response to the recent Federal Budget.