During most of the period between 2014 and 2018 there has been a divergence between consumer sentiment and business confidence in Australia. July’s consumer survey was thought to have marked the beginning of a convergence of the two sectors and August’s figures appeared to have provided confirmation. However, September’s survey indicated consumer sentiment had deteriorated while business sentiment had recovered slightly.
According to the latest Westpac-Melbourne Institute survey conducted early in October, households’ levels of optimism increased marginally as the Consumer Sentiment Index inched up from September’s reading of 100.5 to 101.5. Any reading above 100 indicates the number of consumers who are optimistic is greater than the number of consumers who are pessimistic. The long-term average reading is just over 101.
