The Westpac-Melbourne Institute index of consumer sentiment increased to 97.8 in October from the September recording of 93.9. The rise in the index indicates an increase in the ratio of optimistic consumers to pessimistic consumers and it reverses most of September’s fall.
Unlike last month, Westpac’s chief economist, Bill Evans said the result was not as he had anticipated. “This result is a little short of the increase we would had expected given the strong boost the government received in the polls following recent leadership and ministerial changes. He thought other drivers behind the reduction in pessimism were a stronger dollar and share market plus a firmer jobs market. “The unemployment rate was recently reported to have fallen to 6.2% and jobs growth has been much stronger than anticipated over the past year. He noted job seekers had a more optimistic view of the labour market which he viewed as being “even more significant result than the increase in the overall Index.”
