Australia: Consumer sentiment soars in September
September 11, 2013
The consumer confidence index published by the Westpac and the Melbourne Institute soared to 110.6 points in September (August: 105.7), reaching its highest level since December 2010. This is the fourth consecutive month in which the index is above the 100-point threshold that separates optimistic from pessimistic territory.
The improvement stemmed from households' more optimistic assessment of the general economic situation both today and in the future. In addition, respondents to the survey are now more optimistic regarding their personal finances over the coming year. That said, consumers' intentions to purchase major household items fell 6.9% over the previous month, likely indicating that the Reserve Bank's rate cuts are finally gaining traction in household spending.
FocusEconomics Consensus Forecast panelists see private consumption growing 2.4% in 2013, which is unchanged from last month's forecast. In 2014, panelists see private consumption expanding 3.1%.
Author: Armando Ciccarelli, Head of Data Solutions