"Further evidence of the positive response to the rate cut can be found in the response of those folks with a mortgage with their confidence lifting by 7.4 per cent"
- Westpac chief economist Bill Evans
Mood among Australians was lifted in August, as politicians are promising to boost the economy, which is struggling to switch from the mining sector-driven growth, while lower interest rates keep consumers happy. The Westpac/Melbourne Institute index of consumer mood jumped 3.5% this month, reaching 105.7, from the previous month, when the index hit 102.1, and edging higher from the 100 threshold, which suggests the number of optimistic consumers outweigh those that are pessimistic. The survey was conducted soon after the Reserve Bank of Australia cut interest rate to a new record-low of 2.5%- its eight cut since late 2011, as Australian authorities are trying to counter the effects of falling demand from China. Still, companies are expressing concerns that recent rate cuts are not doing enough to offset the decline in demand.
The Australia Bureau of Statistics said that wages in the country crept up at a steady pace in the second quarter, as a slowing economy and tougher labour market conditions are adding little pressure on wages. The gauge of wage growth inched higher 0.7% in the three months leading to June, consistent with the preceding month figures and slightly lower than economists' estimates. On a yearly basis wage levels were up 3%.
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