Australia data: Westpac Consumer Confidence for October
The as expected bounce this month, up 4.2%
- prior -5.6%
Note ... Confidence in employment prospects is best since late 2011
WPAC comments:
- This result is a little short of the increase we would had expected given the strong boost the government received in the polls
- Rise in the Index has failed to offset the loss we saw last month
- Index has now been below 100 for 18 of the last 20 readings
- Other factors that may have contributed to the boost in sentiment this month include recent recoveries in the Australian dollar and the sharemarket, complemented by a steady improvement in the labour market.
On the jobs market:
- "There has been a very significant and unexpected boost to respondents' assessment of the state of the labour market which looks to be an even more significant result than the increase in the overall Index"
WPAC's Bill Evans, chief economist is still of the view the RBA is on hold for an extended period, but does concede he is concerned about financial market volatility, saying the change in financial conditions does warrant scrutiny on the economic outlook:
- "Westpac has been firmly of the view that rates will remain on hold for the remainder of 2015 and 2016. Improving conditions in the labour market are very important from this perspective. However, changes in financial conditions will also warrant scrutiny in the period ahead"
more to come
