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SYDNEY, Oct 14 (Reuters) - A measure of Australian consumer sentiment soared in October to the highest since July 2018 in a sign of confidence in the country's fiscal and monetary authorities for their handling of the coronavirus pandemic.
The Westpac-Melbourne Institute index of consumer sentiment released on Wednesday jumped 11.9% in October from September, when it climbed 18%.
The index is now 13.2% above its level a year ago at 105.0 meaning optimists outnumbered pessimists.
It is the first 'optimistic' reading since June 2019.
"This is an extraordinary result," Westpac Chief Economist Bill Evans said.
"Such a development must be attributable to the response to the October Federal Budget; ongoing success across the nation in containing the COVID-19 outbreak; and the expectation that the Reserve Bank Board is likely to further cut interest rates at its next meeting on November 3."
Earlier this month, Treasurer Josh Frydenberg announced a larger-than-expected fiscal stimulus package as part of the federal government's plan to boost jobs and growth while the country's central bank pledged to do more to support the economy. details of Wednesday's release were also encouraging.
The sub-index measuring the outlook for the economy over the next 12 months surged 24.2% while the index for the next five years rebounded strongly to be up 14.1% over the month.
The measure of family finances compared to a year earlier climbed 6.2% while the outlook for the next 12 months jumped 9.4%.
In a welcome sign for retailers, the measure of whether consumers felt it was a good time to buy a major household item rose 8.2%.
Westpac Banking Corp WBC.AX and the Melbourne Institute surveyed 1,200 people from across the county.