- Westpac
Consumer confidence in Australia slipped modestly in the lead up to Christmas, with the Westpac-MI consumer sentiment index falling 0.8% to 100.8. Despite the drop, overall sentiment levels remain 10.7% higher than a year earlier. A reading above 100-mark threshold indicates optimists outnumber pessimists. Sentiment towards economic conditions looking five years ahead fell by 11.3%. In contrast, gauges on family finances, both looking back a year and in the year ahead, rose strongly, adding 5.5% and 5.8% respectively. In addition, the sub-index indicating whether now was a good or bad time to purchase major household items increased by 0.8%. At the same time, Australian business confidence recovered modestly in November, while business conditions remained at high levels, signalling a rebound in business investment may be round the corner. Business morale rose from 3 to 5 in the reported month, while the NAB business conditions index remained at 10 after being revised up from 9 in October, well above the long-term average of 5 points.
A separate report showed the number of home loans approved in October declined 0.5%, versus economists expectations for a 1% drop. The value of total housing finance was down 2.0% in the month, seasonally adjusted data from the Australian Bureau of Statistics show.
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