The Westpac–Melbourne Institute Index of Consumer Sentiment has dipped 1% in June to 102.2 from 103.2 in May.

 

Coming after an 8.5% rise in May, the small decline in June mostly represents a consolidation at improved levels, according to Westpac Chief Economist Bill Evans.

 

“Last month’s rate cut from the RBA was the main catalyst behind May’s rally and although confidence has slipped back a touch in June this is a fairly common pattern following an interest rate driven bounce,” says Evans.

 

“At 102.2 the Index is still in slightly ‘positive’ territory overall – recall that readings above 100 indicate optimists outnumber pessimists.