Housing confidence lifts consumer sentiment
Consumer sentiment lifted by 1.9 per cent in November, on the back of improved house prices, according to the Westpac-Melbourne Institute Index of Consumer Sentiment.
After a modest fall last month, Westpac chief economist Bill Evans said it was particularly encouraging to see the index bounce back near to the levels seen after it surged 4.7 per cent following September’s federal election.
The survey was conducted in a week when interest rates were kept on hold and the unemployment rate was reported to be steady at 5.7 per cent.
Mr Evans highlighted strong housing data as the key contributor to the lift in consumer sentiment.
“Importantly, house prices were reported to have risen by 1.9 per cent in the September quarter, with prices in Sydney rising by 3.6 per cent to be up by 11.4 per cent for the year,” he said.
“Not surprisingly, the confidence of respondents who wholly own their house was boosted by 6.1 per cent whereas those folks who are renting registered a drop in confidence of 2.8 per cent,” he said.