Australia: Consumer confidence moves into positive territory in November
November 11, 2015
The Westpac-Melbourne Institute Survey of Consumer Sentiment increased from 97.8 in October to 101.7 in November. The strong result moves the indicator above the 100 threshold that separates optimistic from pessimistic territory. The indicator has been below the threshold for 18 of the last 21 months.
The institute stated that the positive result was based on of consumers’ expectations of the overall economy. Offsetting some of this positive sentiment was consumers’ pessimistic view of their own finances stemming from the recent increase in mortgage rates. The institute also noted that sentiment improved immediately after the newly instated prime minister came into office, stating that, “It appears that such is the boost to confidence from the recent political events that the impact of the interest rate increases was comfortably contained.”
Author: Robert Hill, Economist