Australians are the most confident they’ve been since January 2014 after the central bank cut interest rates and the government announced a A$10 billion ($7.9 billion) boost for families and small businesses.
The Westpac-Melbourne Institute consumer sentiment index rose 6.4 percent in May from April and was above 100 — the point at which optimists outnumber pessimists — for the first time since February. The increase is the first strong result in the month of May since 2007, Westpac Chief Economist Bill Evans said in an e-mailed statement.
The rise mirrors a boost in poll ratings for Prime Minister Tony Abbott after his Liberal-National coalition government announced tax cuts and instant writeoffs for small firms in his budget May 12. The upbeat outlook is a turnaround after last year’s austere budget saw confidence plunge and helped trigger a challenge to Abbott’s leadership. It also supports the Reserve Bank of Australia’s view that rate cuts are boosting household spending.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.