Australia consumer confidence slips in June as finances squeezed

SYDNEY, June 9 (Reuters) - A ‌measure of ​Australian ​consumer sentiment fell back in June as rising borrowing costs and higher petrol prices squeezed family ‌finances, a survey showed on Tuesday, while expectations ⁠for the housing market also cooled.

A Westpac-Melbourne Institute survey showed its ‌main index of consumer sentiment ‌fell 2.9% in June to 80.6. A reading below 100 means pessimists considerably outnumber optimists.

"At 80.6, the latest ​monthly Index read is back amongst the weakest seen in the fifty-year history of the survey," said Westpac's ⁠head of Australian macro-forecasting, Matthew Hassan.

"Other concerns may be starting to emerge with ​a sharp drop in house price expectations suggesting some consumers are becoming more unsettled about the ​impact of recently announced tax ‌changes."

The Labor government last month announced proposals to cut tax breaks on buying homes to ⁠rent, which has long been a popular investment vehicle in Australia.

Sentiment has also been hard hit by three increases in interest ⁠rates from the Reserve Bank of Australia this year and a ​surge in petrol prices following conflict in the Middle East.

Expectations for family finances fell sharply in June as cost-of-living pressures dominated, while the ‌longer-term outlook for the economy also darkened.

The Time to Buy a Major Item sub-index ‌edged up slightly, but at 86.4 remains far below the ⁠long-run average of 123.0. ‌Sentiment on housing remained ​weak, with consumers paring back expectations for future price rises.

(Reporting by Wayne Cole; Editing by Jacqueline ‌Wong)

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