Consumer confidence recovery continues
The Westpac Melbourne Institute Index of Consumer Sentiment has risen 5.9 per cent in the past three months, taking it to only 1.2 per cent below its pre-budget levels in April.
Westpac chief economist, Bill Evans, said most of the damage done to confidence by the federal budget in May has been repaired.
“Households have also probably been buoyed by resistance in the Senate to many of the unpopular budget measures,” he said.
“It would seem that households are now assuming that some of these measures will eventually be moderated or abandoned.”
The repeal of the carbon tax has also boosted consumer confidence, Evans said.
The consumer sentiment index rose by 3.8 per cent in August to 98.5 points, after hitting a two-year low in May.
The index has stayed below 100 points for five consecutive months, meaning there are more pessimists about the economy than optimists. Inside Retail – Read more…