Sydney Australia skyline

Australia Consumer Confidence February 2019

Australia: Consumer sentiment rebounds in February

The Westpac-Melbourne Institute consumer sentiment index rose from 99.6 in January to 103.8 in February. Therefore, it moved back above the 100-point mark that separates optimism from pessimism among consumers.

February’s drop was the result of a broad-based improvement in the sub-components of the index, largely driven by an easing monetary policy stance from the Reserve Bank and solid labor market conditions. Consumers’ assessments of their personal finances compared to a year ago as well as their expectations of their finances in the next 12 months improved significantly, likely thanks to a new wait-and-see approach from the Central Bank and tax cuts scheduled to come into effect in July. Moreover, expectations of economic conditions in the next five years became rosier, as did the general economic outlook on the next 12 months, both of which moved further above their longer run averages. Additionally, the number of consumers expecting unemployment to increase in the year ahead fell to the lowest level in seven years, on the back of the continued solid performance of the labor market. However, consumers were less likely to buy a dwelling due to tighter lending standards and as they expected further house price corrections. Lastly, respondents’ propensity to purchase major household remained broadly unchanged.

Australia Private Consumption Forecast

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest