Consumer Confidence Falls Before May Budget

Consumer confidence has fallen ahead of the May federal budget, as drops in commodity prices sparks worries about the economy.

The Westpac/Melbourne Institute index showed consumer sentiment fell by 3.2 per cent in April to 96.2 points, staying below 100 points and indicating there are more pessimists about the economy than optimists.

Westpac chief economist Bill Evans said high profile coverage about sharp fall in the iron ore price undermined household confidence.  “With the index entering the budget period well below the key 100 level and with downward momentum we must recognise that confidence is again looking vulnerable,” he said.