- Reserve Bank of Australia
A gauge of consumer confidence in Australia increased for a second consecutive month in November as households became more upbeat on the economic outlook and their own finances. Nevertheless, the sentiment remains subdued, as the Westpac-Melbourne Institute Consumer Sentiment Index ticked up 1.9% to 96.6, up from 94.8 in the preceding month, but failed to overcome the 100-mark threshold, indicating pessimistic consumers outnumber optimists. The November index reading was still down 12.5% compared with the same month last year, meaning pessimistic mood has been persisting for nine months. The rise in the gauge was driven by the index for economic conditions over the coming 12 months, which soared 10.8% in the reported month, while the index for conditions in the longer term increased 2.1%. The measure of households' finances compared to the previous year dropped 4.2%, whereas the outlook for the next 12 months rose 3.1%.
Changes in Australia's economy after years of the mining boom have made consumers conscious of the potential strain on their finances over the coming period, especially with jobless rate at the highest level since the global financial crisis. The RBA is trying to support a recovery in demand, by keeping interest rates at record low levels, but admits that the economy is likely to take some time to adjust to the transition in growth.
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