Australian Consumer Sentiment Continues To Rise

Post by NeilMc on September 9, 2009 · Under Australian Economy, Business News · Comment 

Consumer sentiment in Australia continues to rise with a leading index recording yet another gain of 5.2 per cent in September, having risen by 4 per cent in the previous month. The index currently stands at its highest level since July 2007.

The Westpac- Melbourne Institute Consumer Sentiment Index rose to 119.3 points in September from its August level of 113.4 points.

On an annual basis, seasonally adjusted, the index has risen by 29.4 per cent for the year ending September. On a trend basis the consumer sentiment index rose by 2.0 per cent in September, resulting in a trend basis 34.1 per cent annual gain.

Despite the gain in consumer sentiment, retail sales in Australia fell by 1.0 per cent in July from a month earlier, though year on year retail sales in July have risen to $19.82 billion from $18.65 billion in the previous year according to data from the Australian Bureau of Statistics.

Bill Evans, chief economist for Westpac said the index’s rise over the last four months of 34.4 per cent, is the largest ever increase in the index’s 35 year history.

“This is a truly extraordinary result. The stand out story is the relief rally for consumers — relief that the economy has avoided recession and that expected job losses have not materialized. This is clear from the survey detail. The biggest shift over the last four months has been in components that capture expectations (+49.6%). In contrast, components measuring views on current conditions have risen by a more moderate 14.4% over this period,” Mr. Evans said in a statement.

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