7.5% lift in consumer confidence

[Jovial Monk]

Consumer confidence surges 7.5%: survey

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December 10, 2008 - 10:33AM

Lower interest rates and cheaper petrol have led to a lift in consumer confidence, a survey shows.

The Westpac-Melbourne Institute index of consumer sentiment rose by 7.5 per cent in December to 92.0 index points, from 85.5 points in November.

Most of the 1,200 consumers polled were surveyed after the Reserve Bank of Australia (RBA) cut the cash rate by 100 basis points on December 2 to 4.25 per cent.

Westpac chief economist Bill Evans said the lift in consumer sentiment in December was not a given after a "disappointing rise" of only 4.3 per cent the month before.

"Despite the announcement of a further one per cut in the Reserve Bank's cash rate, an 18.4 per cent fall in petrol prices and a share market rally in recent weeks, it was not obvious that the consumer sentiment index would have shown such a significant jump," he said on Tuesday.


http://news.smh.com.au/business/consume ... -6vbc.html

[mantra.]

It could be attributed to Xmas also, but the roads were hectic and the shops packed today. In my area petrol was down to 99 cents a litre - after hovering around $1.15 for the last few weeks.

I believe it's only a temporary boost though and this will be the last splurge this country has for quite a while. The New Year won't bring more jobs, better pay or a reduction in our basic financial commitments - in fact the reality will hit us even harder that this country is suffering a serious economic downturn. Rudd's bonus to many has helped temporarily, but it won't help in the long term unfortunately.

[Jovial Monk]

These are difficult times for sure but the govt has made all the right moves and the housing market is picking up. Let us not spread doom & gloom!

[mantra.]

These are difficult times for sure but the govt has made all the right moves and the housing market is picking up. Let us not spread doom & gloom!

Yes - you are right Dita. Howard has gone and we should all be smiling again. The last few years have just been so depressing living under Howard's regime. Reading the doom and gloom pasted all over the media every single day for 11 years didn't encourage positive thinking.

I don't think a downturn will be morally bad for us anyway - it's about time most people slowed down in their consumerism and took some time to look at their families and the people around them. We tend to blame the middle incomers with their MacMansions etc. for the problems we are experiencing at the moment, but someone in some article yesterday termed it the rich person's recession. The elite are responsible due to all their commissions gained from gambling with the money of others, their borrowings to invest in shares or property and the fact so many have been called on to pay back this money immediately when the market started to droop. They are the ones overcommitted.

It's just a pity that it makes the rest of us a bit worried as well as many of us rely on these "elite" to pay our wages. When they go down, we do too.

[Jovial Monk]

Hehehe the recession may not be too bad---unless you are one of the 1-2% who will lose their jobs because of it

We had recession under Howard when he was Treasurer then under Keating. We have not had one since because the growth of China and to a lesser extent India boosted demand for all sorts of things. It appears China will be hit harder than it had been estimated earlier and that is going to hit us hard.Not a lot of iron ore it seems will be exported to China next year and prices will be renegotiated radically downwards.

[skippy]

These are difficult times for sure but the govt has made all the right moves and the housing market is picking up. Let us not spread doom & gloom!

Yes - you are right Dita. Howard has gone and we should all be smiling again. The last few years have just been so depressing living under Howard's regime. Reading the doom and gloom pasted all over the media every single day for 11 years didn't encourage positive thinking.

I don't think a downturn will be morally bad for us anyway - it's about time most people slowed down in their consumerism and took some time to look at their families and the people around them. We tend to blame the middle incomers with their MacMansions etc. for the problems we are experiencing at the moment, but someone in some article yesterday termed it the rich person's recession. The elite are responsible due to all their commissions gained from gambling with the money of others, their borrowings to invest in shares or property and the fact so many have been called on to pay back this money immediately when the market started to droop. They are the ones overcommitted.

It's just a pity that it makes the rest of us a bit worried as well as many of us rely on these "elite" to pay our wages. When they go down, we do too.

That is so right mantra, atm I dont know anybody doing it any harder than usual other than the higher income earners, I expect that to change over the next 6 months or so but it seems to be the big end of town howling the loudest , a rich mans recession sounds pretty right atm.