The Westpac-Melbourne Institute Index of Consumer Sentiment increased by 4.2% in October from 93.9 in September to 97.8 in October. This result is a little short of the increase we would have expected given the strong boost the government received in the polls following recent leadership and ministerial changes. Four of the five components of the Index increased in October. Both components measuring views on family finances increased: the sub-index on ‘family finances vs a year ago’ increased by 1.3% and the sub-index on ‘family finances over the next 12 months’ rose by 3.5%. Expectations around the economy were more mixed: the subindex on ‘economic conditions over the next 12 months’ rose by 20% whereas the sub-index on ‘economic conditions over the five years’ fell by 7.9%. Responses to ‘time to buy a major household item’ were constructive, but the detail on housing was weak. See attached bulletin for all the detail from Chief Economist Bill Evans: (VIEW LINK)
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