Consumers confident despite rate rise
(14 October 2009 – Australia) A key index of consumer confidence has continued to surge in October, despite the Reserve Bank's decision to raise interest rates.
The Westpac - Melbourne Institute Index of Consumer Sentiment increased 1.7 percent in the last month, and stands at 121.4 in October.
That means that, overall, people are optimistic, but Westpac's chief economist, Bill Evans, warns that there is a large gap between household's expectations and their assessment of current conditions.
The Expectations Index is now at its highest level since the survey was first produced in 1975, Mr Evans noted in the report.
Conversely the report found most people viewed their household finances to be still worse off in comparison to one year ago, despite the bounce in confidence about future conditions.
The index level in this area was increasing towards a neutral score of 100, an improvement from the lows reached during the height of the financial crisis.
The Consumer Sentiment Index is an average of five component indexes which reflect consumers' evaluations of their household financial situation over the past year and the coming year.
That means that, overall, people are optimistic, but Westpac's chief economist, Bill Evans, warns that there is a large gap between household's expectations and their assessment of current conditions.
The Expectations Index is now at its highest level since the survey was first produced in 1975, Mr Evans noted in the report.
Conversely the report found most people viewed their household finances to be still worse off in comparison to one year ago, despite the bounce in confidence about future conditions.
The index level in this area was increasing towards a neutral score of 100, an improvement from the lows reached during the height of the financial crisis.
The Consumer Sentiment Index is an average of five component indexes which reflect consumers' evaluations of their household financial situation over the past year and the coming year.
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