SYDNEY, Aug 10 (Reuters) - A measure of Australian consumer sentiment bounced in August after a couple of soft months, likely aided by a cut in domestic interest rates to record lows that was warmly welcomed by those with housing debt.
The Melbourne Institute and Westpac Bank WBC.AX survey of 1,200 people found consumer sentiment rose by 2 percent in August from July, when it fell 3 percent.
That left the survey index up 1.6 percent on August last year at 101.0, with optimists slightly outnumbering pessimists.
Westpac chief economist Bill Evans noted that optimists have only outnumbered pessimists in eight of the past 30 months, and three of those were in the past four.
"Overall the lift in the Index is still consistent with an improved outlook for the Australian economy," said Evans.
The Reserve Bank of Australia's (RBA) decision last week to cut interest rates a quarter point to 1.5 percent lifted confidence among mortgage holders by 7 percent in the month.
The impact was also clear in the measure of family finances compared to a year ago, which rose 1.0 percent, while that for finances over the next 12 months climbed 4.3 percent.
The survey showed expectations for the economic outlook over the next 12 months bounced 3.5 percent after a sharp fall in July, while the outlook for the next five years dipped a slight 0.7 percent.
The measure of whether this was a good time to buy major household items rose 1.6 percent. Consumers also felt better about the housing market with the time to buy a home index jumping 10.1 percent in August.