Westpac’s post-Budget consumer sentiment survey is out and shows a solid bounce of 6.4% to 102.4.
Westpac chief economist Bill Evans said that “clearly, the two driving forces behind the boost have been the Federal Budget and the interest rate cut.”
“It is the first time since February this year that the index has been above 100” Evans said.
Key to the surge in confidence, and the potentially economic growth altering news for Australia, is that the survey showed consumer expectations for the economy over the next 12 months jumped 9.2% with expectations for the next five years soaring 20.2%.
What was “also encouraging” Evans said was that “the Westpac Melbourne Institute Index of Unemployment Expectations fell by 5.8% to 147.3. (A lower read indicates more confidence around the employment outlook). The Index is now 3.2% below its average read over the last year.”
If this surge can be sustained it is going to significantly contribute to the increase in domestic growth Australia needs to make its economic transition.