Australia: Consumer sentiment picks up in October
October 11, 2017
The Westpac-Melbourne Institute Index of Consumer Sentiment came in at 101.4 in October, up from 97.9 in September, marking the highest reading in a year. The index thus inched above the 100 mark for the first time since November 2016, indicating greater optimism than pessimism among consumers.
The increase was likely due in part to buoyant activity in the global economy. On the domestic front, a healthy labor market also fueled improved sentiment. Trade workers became markedly more optimistic, spurred by the strength of the construction sector. Looking at individual sub-sectors, consumers grew more positive regarding their personal finances over the next 12 months, their current financial situation compared to 12 months ago and future economic conditions. They also became more willing to make major purchases.
Author: Oliver Reynolds, Economist