Consumer sentiment improves in November: Westpac survey
Make us a preferred source
Make us a preferred source on Google
The news: Consumer sentiment has continued to improve over the last month although the momentum has appeared shaky following the US election results, according to the monthly survey by the Westpac Melbourne Institute.
The numbers: The Westpac Melbourne Institute Consumer Sentiment Index rose 5.3% to 94.6 in November from 89.8 in October. The reading remains below the ‘neutral’ level of 100, meaning pessimists outnumbered optimists.
The context: The report found the overall consumer mood has continued to build on the previous month’s promising gain, with the index now up 14.4% from its mid-year lows. Consumers are seeing some further easing in the pressure on family finances, and no longer concerned about the risk of further interest rate rises.
However, there were some big shifts over the course of the survey week. Sentiment was markedly higher at the start of the week, and remained unaffected by the RBA rate decision on 5 November. However, sentiment posted a sharp fall following the US election result on 6 November with a tentative recovery forming towards the end of the week.
What they said: “These swings make the November result trickier to assess. Whether the strong start, or weaker finish to the week are a better guide depends on how lasting the post-US election drop is expected to be,” Westpac’s head of Australian macro-forecasting Matthew Hassan said.
The source: Westpac Survey
