Australia: Consumer confidence rises in October
October 14, 2015
The Westpac-Melbourne Institute Survey of Consumer Sentiment increased from 93.9 in September to 97.8 in October. The result recovered some of the gains lost by last month’s decrease; however, the index is still below the 100 threshold that separates optimistic from pessimistic territory, where it has been for 18 of the last 20 months.
The institute stated that although the increase in sentiment was expected thanks to the positive reception the new government has received, the institute had expected a stronger increase. Other factors that likely impacted October’s reading were a recovery in the AUD over the past month, and steady gains in the labor market. Regarding the economic outlook, the institute noted that expectations were varied, stating that, “the subindex on ‘economic conditions over the next 12 months’ rose by 20% whereas the sub-index on ‘economic conditions over the five years’ fell by 7.9%.”
Author: Robert Hill, Economist