SYDNEY, Nov 12 Reuters Australian consumer sentiment rose sharply in November for a second straight month, reaching a 212year high with the mood on the economy and finances finally turning optimistic, a survey showed on Tuesday.
The WestpacMelbourne Institute index of consumer sentiment rose 5.3 in November from October, when it jumped 6.2. The index reading of 94.6 showed pessimists still outnumbered optimists, but by a narrowing margin.
Indeed, readings for future finances and the economic outlook broke above the 100 mark for the first time since the pandemic.
Consumers are seeing some further easing in the pressure on family finances, are no longer concerned about the risk of further interest rate rises and are becoming more confident about the economic outlook, said Westpac Senior Economist Matthew Hassan.
The Reserve Bank of Australia RBA again left its interest rates unchanged at 4.35 this month and financial markets are confident the next move will be down, albeit not until next year.
Hassan did caution that survey responses took a turn for the worse after Republican Donald Trump39;s won the U.S. presidential election. It was unclear whether this would last.
Otherwise, the survey was broadly firmer as the share of consumers expecting mortgage rates to drop in the future climbed to the highest since 2016.
That was reflected in the survey39;s measure of family finances compared to a year ago which surged 6.8, while finances for the next 12 months rose 4.4….