Consumer confidence has soared in July to reach one of its highest levels, showing that Australians are still optimistic about the economy.
In the two months since May, consumer confidence has surged 23.2 percent. The Westpac-Melbourne Institute Consumer Sentiment Index increased by 9.3 percent this month, reaching a total of 109.4.
Westpac chief economist, Bill Evans said the avoidance of a technical recession combined with the Government’s cash handouts are likely the key factors behind the optimism.
Evans also said the unexpected resilience of the employment figures has played a role with job security increasing by 12 percent in June.
There is also good news for retailers with a rise in the number of people who think it is a good time to buy household items.
However, Evans has warned it may be a bit early for optimism.
“We still expect, despite an improving outlook for consumer spending, that second quarter GDP will print negative, reviving recessionary concerns.”
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