Westpac / Melbourne Institute Consumer Confidence Index (s.a.) for October +0.9% m/m to 94.8
- prior was -4.6% to 94.0
- At 94.8 the reading is -12.5% y/y and is now below 100 (pessimists outnumbering optimists) for 8 consecutive months
A look at some of the detail (the survey questions 1200 adults aged 18 years and over on topics such as their family finances and their expectations for the economy) :
- On the economy 1 year ahead, down 5.2% to 82.0 (5 years ahead we are a more cheerful lot …. up 5.5% to 12.8 …. 5 years ahead … LOL)
Westpac comments:
- They note that sentiment rose despite the fall in the stockmarket and the currency
- Improved labour market outlook
- while the index seems to be “stuck” in a pessimistic range there is no sign, at this stage, of ongoing deterioration
From chief economist at Westpac, Bill Evans:
“Households, who reacted negatively to the Commonwealth Government’s May Budget, may have been encouraged by recent announcements that a number of budget initiatives have been set aside for the time being”
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On the improved labour market outlook:
- The Westpac Melbourne Institute Unemployment Expectations Index fell by 3.9%. A fall in this index indicates that respondents are feeling more comfortable with respect to job security or employment prospects.
- This is the lowest print for this index since November 2013; the largest fall since September 2013 and the index is now 9.6% below the recent high in March this year.
