Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter

Jobs and petrol help drive improvement in consumer sentiment

Westpac has reported an increase in consumer confidence, which the bank insists is more than just a result of the regular “holiday boost”.

The major reported a 2.4 per cent monthly improvement in consumer sentiment for January, but it is still down 9.7 per cent compared with 12 months ago.

However, chief economist Bill Evans said the small monthly increase indicates that sentiment has lifted over and above the rise normally seen in January.

Advertisement
Advertisement

“The recent hiatus in media coverage on Budget issues would have been a welcome respite for respondents,” he said.

“The December labour force report would also have clearly boosted confidence.

“The unemployment rate was reported to have fallen from 6.2 per cent in November to 6.1 per cent in December, with an impressive 37,500 jobs added on top of the 44,900 jobs added in November.”

Mr Evans said the sharp fall in petrol prices would have also been a positive for consumers.

“Local pump prices averaged just $1.10 per litre nationally during the January survey week – a six-year low, and down sharply on the $1.32 per litre recorded in December and the $1.46 per litre average throughout 2014.”

Mr Evans added that markets are giving little chance of a rate cut when the Reserve Bank board meets on February 3.

 

Jobs and petrol help drive improvement in consumer sentiment
mortgagebusiness

Latest News

The corporate regulator has proposed to use its product intervention powers to address “significant detriment” caused by continuing cre...

The federal government’s fund manager has paused investment rounds on the $2-billion Australian Business Securitisation Fund in light of c...

The banking sector’s commitment to extend loan repayment holidays for distressed borrowers could prolong the deterioration in credit quali...

FROM THE WEB
podcast

LATEST PODCAST: Support for current broker remuneration model

Do you expect COVID-19 to reduce or increase your business flows?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.