For February
Provided by: Westpac Melbourne Institute
Official Release: PDF

Consumer confidence slid 2.6% in February as respondents expect interest rates to continue to go up in the Reserve Bank of Australia's tightening campaign, despite February's decision to hold rates steady. Developments in the global economy have also created less urgency for the RBA to continue hiking rates after three 25 basis point increases, bring rates to 3.75%.

“Other factors which are likely to have unnerved respondents were the adverse developments in the global economy. These included news that the Chinese authorities unexpectedly moved to slow their economy; the emergence of further sovereign risk concerns in Europe and four consecutive loss weeks on the US share market. Not surprisingly these developments affected Australia's financial markets. Since the last Sentiment survey the Share Price Index has fallen by around 8% and the Australian dollar
was down by 6.5%.

“The Reserve Bank Board next meets on March 2. The surprise decision to put rates on hold in February has convinced markets that the Bank will pause again in March. The Governor's Statement indicated that the Bank planned to raise rates further but the February pause indicated they see less urgency. In the Bank's Statement on Monetary Policy the most prominent downside risk to their upbeat growth outlook was nominated as "a significantly slower recovery in the world economy than currently expected". Recent global developments will highlight the need for caution.

For December
Provided by: Westpac Melbourne Institute
Official Release: PDF

Australian consumer confidence slid 3.8% in December following a 2.5% decline in November as central bank Governor Glenn Stevens hiked interest rates for an unprecedented third straight month. Consumers are digesting these increases which are being filtered through to higher mortgages and cost of credit. Data today, including weaker trade and lending figures, give the RBA Governor scope to keep interest rates unchanged at 3.75% in his next meeting in February, after quarter percentage point increases in October, November and this month. 

For November
Provided by: Westpac Melbourne Institute
Official Release: PDF

For October
Provided by: Westpac Melbourne Institute
Official Release: PDF

For September
Provided by: Westpac Melbourne Institute
Current Release: PDF

The WMI Sentiment index surged by 5.2% in September from 113.4 in August to 119.3 in September, the higtest level since July 2007. It also corresponds to a 34.4% increase over the past 4 months, the largest 4-month gain in the index's 35-year history. However, such improvement in sentiments has not exactly translated to boosts in spending or investment. The good sentiments come from expectation of economic improvements. However, assessment of current conditions remain moderate. The current conditions index had a reading of 109.5 in September, but the WMI noted that economic booms have historically followed readings of 120 and above. 

For August
Provided by: Westpac Melbourne Institute
Official Release: PDF

From the Release: "The Westpac-Melbourne Institute Consumer Sentiment Index increased by 3.7% in August from 109.4 in July to 113.4 in August.

The rise extends what had already been an extraordinary rally in confidence over the previous two months. The index is now up 27.8% since May, the biggest three month gain since the survey began in 1975, and by a wide margin. Indeed, the only comparable surges in sentiment were seen coming out of the recessions of the early 80s (+22.8%) and the early 90s (+20.3%) - and both of these rallies still left sentiment in pessimistic territory overall, with the Index below 100. The current surge by contrast has seen sentiment rise back into solidly optimistic territory. The Index is now up a staggering 43.6% from its 2008 low, to its highest level in nearly two years. Remarkably, sentiment is now just 1.6% below its 2007 average. The message is clear: as far as consumers are concerned, the worst of the current downturn appears to have passed."

For July
Provided by: Westpac Melbourne Institute
Official Release: PDF

For June
Provided by: Westpac Melbourne Institute
Official Release: PDF

Consumer confidence jumped in June by the most in 22 years, as the economy was able to avoid falling into a recession by posting positive growth for the 1st quarter. Also, the significant stimulus from the government and lower interest rates are helping to boost consumer spending and borrowing. Home loans for instance have increased for 7 straight months. The sentiment index rose 12.7% from May to 100.1, the first time it has been above 100 since January 2008. When the index is above 100 it means optimists outnumber pessimists.