Australian consumer sentiment slides under rates, petrol pressure

SYDNEY, Sept 8 (Reuters) - ‌A measure of ​Australian ​consumer sentiment fell sharply in September, a survey showed on Tuesday, as fears of higher ‌interest rates and a rebound in fuel prices ⁠pressured finances and the economic outlook.

A Westpac-Melbourne Institute survey showed its ‌main index of consumer ‌sentiment slid 5.2% to 84.4 in September, reversing almost all of a 6.0% gain in the previous month. ​The index was still down almost 12% from a year earlier, with pessimists outnumbering optimists by a wide ⁠margin.

"Both fuel prices and interest rates again look to be driving the ​move," said Matthew Hassan, Westpac's head of Australian macro-forecasting. "It has likely also added to unease ​about the continued weakening in housing ‌markets."

The survey was taken in the wake of data showing core inflation running above ⁠forecasts in July, fanning speculation that the Reserve Bank of Australia would have to raise interest rates for a fourth ⁠time this year.

This combined with rising petrol prices to knock the ​survey's measure of family finances down a steep 9.2% in September.

A measure of the economic outlook also showed large declines, as ‌did the index on whether it was a good time to buy a major household ‌item.

Worries about falling house prices weighed heavily on those ⁠with a mortgage, where ‌sentiment dived 13% ​in September, compared with just a 0.6% drop for renters.

(Reporting by Wayne Cole; Editing by Thomas ‌Derpinghaus)

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