Australia: Consumer confidence picks up in April
April 13, 2011
In April, the index of consumer sentiment, published by Westpac and the Melbourne Institute, rose to 105.3 points, up from the nine month low of 104.1 points in March. With the April increase, the index moved further above the long-term average of 100 points. The monthly increase in consumer sentiment came on the back of a favourable scenario for households, as the pause in the RBA monetary policy tightening cycle was extended and labour market conditions remained favourable. The continued increase in oil prices, fuelled by the ongoing political turmoil in the Middle East and North Africa, partially muted the positive impact of improved consumer confidence in the Australian economy. Against this backdrop, households' expectations regarding their financial situation improved compared to the previous month and consequently they expressed a higher willingness to purchase durable goods in comparison with the March survey.
Author: Armando Ciccarelli, Head of Data Solutions