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Falling consumer sentiment good for investors

With shares in shopping centre operator Westfield Group (ASX: WDC) falling away over the last week, investors are now presented with a more attractive price to add this blue chip to their portfolio.

The most recent Westpac/Melbourne Institute Survey of Consumer Sentiment revealed a slight decline in confidence over the last month, adding to the plummet in confidence already experienced since March. The index of consumer sentiment is now sitting at 102.1 points, down roughly 8% since March where shares were still soaring towards the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) high of 5,249 points.

Whilst Westfield largely relies on consumers to spend their money on retailed goods for its revenues, investors have traded its shares downwards, focused on possible short-term impacts on profits. Since the beginning of last week, the company’s shares have fallen by 3.4% to around $11.40, giving investors with a long-term focus an opportunity to take advantage of its 4.4% dividend yield and excellent growth potential.

Meanwhile, the diminishing consumer confidence will also likely have an effect on domestic retailers such as Myer (ASX: MYR) or Harvey Norman (ASX: JBH) in the short-term, which could open up further investing opportunities in the retail sector. Myer, for instance, may be one to watch closely.

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Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned in this article.

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