💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Australian Sept consumer sentiment surges in 'pleasant surprise'

Published 09/09/2020, 10:30 am
WBC
-

SYDNEY, Sept 9 (Reuters) - A measure of Australian consumer sentiment surged in September as the country's coronavirus-stricken Victoria state managed to curb the spread of the disease while other states prevented a second wave.

The Westpac-Melbourne Institute index of consumer sentiment jumped 18% in September from August, when it dropped 9.5%.

Despite the hefty gains, the index was down 4.5% on September last year at 93.8, meaning pessimists outnumbered optimists.

Westpac Chief Economist Bill Evans said the September outcome was a 'pleasant surprise'.

"Victoria's new cases slowed markedly once lockdown measures were in place and we saw no evidence of second waves in either NSW or Queensland," Evans said.

However, there was still extreme nervousness about the near-term economic outlook, Evans cautioned.

The sub-index measuring the outlook for the economy over the next 12 months surged 41% but was still 18% below its level a year ago.

The index for the next five years rebounded strongly to be up about 19% over the month.

The measure of family finances compared to a year earlier climbed 11.2% to 87.5 while the outlook for the next 12 months jumped as well to swing into positive territory.

In a welcome sign for retailers, the measure of whether consumers felt it was a good time to buy a major household item jumped 16.3% though it was still 12.1% below the levels of a year ago.

Westpac Banking Corp WBC.AX and the Melbourne Institute surveyed 1,200 people from across the county

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.