SYDNEY (Reuters) – A measure of Australian consumer sentiment dived from a three-year high in April as market turmoil triggered by U.S. President Donald Trump’s tariff plans hit the outlook for the economy and family finances, a survey showed on Tuesday.
The Westpac-Melbourne Institute index of consumer sentiment Slid 6.0% in April from March, more than erasing the previous month’s 4% gain. The index was still 9.3% higher on a year earlier at 90.1, but pessimists continued to outnumber optimists.
Matthew Hassan, Westpac’s head of Australian macro-forecasting, noted sentiment among consumers surveyed before Trump’s announcement had eased just a touch, but the reading afterwards dropped 10% to 86.6.
“The scale and breadth of tariff increases, which included a 10% tariff on Australian goods, came as a major surprise, triggering a sell-off in global financial markets,” he said.
“With the situation still deteriorating, there is a clear risk of more significant sentiment declines in the months ahead.”
(Reporting by Wayne Cole; Editing by Stephen Coates)
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