SYDNEY, March 10 (Reuters) - A measure of Australian consumer sentiment rose for a second consecutive month in March as upbeat news on the economy brightened the longer term outlook for activity and consumption.
The Westpac-Melbourne Institute index of consumer sentiment released on Wednesday rose 2.6% in March, on top of a 1.9% increase the month before.
That left the index up a hefty 21.6% on March last year when the start of coronavirus lockdowns sent confidence crashing. The index reading of 111.8 was just short of a decade high and meant optimists now clearly outnumbered pessimists.
"Australia's success in containing COVID-19, the promise of vaccine rollouts bringing an end to the pandemic, and support from stimulatory government policies have all contributed to the sustained lift," said Westpac chief economist Bill Evans.
The survey measure of the outlook for the economy over the next 12 months climbed 3.7% in March, while that for the next five years rose 2.3%.
Family finances compared with a year ago gained 2.8% and the index for finances over the next 12 months firmed 0.2%.
A measure of whether it was a good time to buy a major household item jumped 3.7%, adding to an already positive background for retailers.
The housing market remained a hot topic with the survey's index of house price expectations rising a further 3.1% in March to a seven-year high.
At the same time, the surge in prices was making housing seem less affordable with the measure of whether it was the right time to buy a dwelling falling 3.6%.