Consumer Confidence Gets a Budget Rebound: CCIQ
The Westpac-Melbourne Index of Consumer Sentiment rose 1.9% to 100.7 in April as respondents welcomed Government announcements around income tax cut from last week’s Federal Budget.
The Chamber of Commerce and Industry Queensland (CCIQ) notes that while the index is marginally positive, the overall trend in the last six months has seen sentiment subdued as falls in the value of residential housing prices on Australia’s East Coast weigh on consumers nationally.
CCIQ Head of Industry, Dan Petrie said house price expectations which rose sharply over the month illustrate the profound impact housing sentiment plays in the overall economy.
“Consumer confidence is increasingly tied to household wealth and it is fair to say the premise of that construct has been tested over the last 12 months.
“A royal commission and the vagaries tied to the upcoming election have weighed heavily on consumers over the last two years to be fair,” Mr Petrie said.
CCIQ notes a moderate rise in the ASX year to date and a ‘solid’ rise in expectations regarding the outlook for the economy has offset negative around increased fuel prices over the last three months.