Australia consumer sentiment slips again in Jan-survey

SYDNEY, Jan 22 (Reuters) - A measure of Australian consumer sentiment slipped for a second month in January as concerns about the economic outlook and job prospects outweighed the usual seasonal cheer of the summer holidays.

The survey of 1,200 people by the Melbourne Institute and Westpac Bank showed its index of consumer sentiment dipped a seasonally adjusted 1.7 percent in January from December, when it had fallen by 4.8 percent.

The index reading of 103.3 was the lowest since July, though still up 2.7 percent on January last year.

Westpac chief economist Bill Evans noted that typically the January survey shows a strong seasonal upward bias because of the 'holiday effect', but this time the effect was more modest.

It was possible some respondents had reacted to gloomy media coverage of a soft employment report for December released last week in the middle of the survey period.

The survey showed the largest decline in the sub-index measuring the economic outlook for the next five years which dropped 3.2 percent. The index for the year ahead eased a more modest 0.5 percent.

The gauge of family finances compared to a year ago fell 2.4 percent, though it was still up almost 15 percent compared to January 2013.

The index for whether it was a good time to buy a major household item fell a slight 0.3 percent, but remained historically high at 139.0.

Respondents were again more pessimistic about the future than the present, with the gap between measures of current conditions and expected conditions at its widest since June 2000.

People were also a little less bullish on the outlook for home prices, though that index was still up 29 percent on January last year.

Home prices in Australia's major cities rose almost 10 percent last year as low mortgage rates and strong population growth fuelled demand.

The Reserve Bank of Australia (RBA) has cut rates to record lows of 2.5 percent in part to revive the housing market, both through prices and new building.

Westpac's Evans said evidence that low rates were working meant the RBA was almost certain not to cut rates again at its next policy meeting on Feb.4, though he still saw a case for an easing later in the year.

(Reporting by Wayne Cole; Editing by Shri Navaratnam)

((Wayne.Cole@thomsonreuters.com)(612 9373 1813)(Reuters Messaging: wayne.cole.thomsonreuters.com@reuters.net))

Keywords: AUSTRALIA ECONOMY/CONSUMER