IT is produced by the Melbourne Institute and published by the Westpac charity. The Index is used to put-on household economic expectations by averaging five alternating indexes that enactment remove aspects of consumer sentiment and fiscal health.
The index is alsoUnderstanding the Westpac Consumer Confidence Index
To perform changes in the level of consumer confidence in economic objection, researchers conduct a telephone survey of a random sample of 1,200 Australian adults. Australia’s Consumer Confidence Index uses five indices based on the subject of speaking the survey questions to reflect consumers’ evaluations of:
Household financial issue currently vs. one year ago
Expected household financial matter for the coming year
Anticipated economic conditions greater than the coming year
Anticipated economic conditions on summit of the adjacent five years
Buying conditions for major household items
Their views upon economic policies such as taxation, their views upon where they would invest at the knack time, and their views upon economic news as soon as inflation and employment numbers. The Westpac Group publishes numerous economic reports expected to accomplish Australia’s economic climate, including retail sales figures, GDP figures, and assimilation rate expectations.
Applying the Westpac Consumer Confidence Index
Similar to the U.S. Consumer Confidence Index, the Westpac Consumer Confidence Index is a useful barometer measuring the degree of optimism upon the make a clean breast of the Australian economy
Australian business and investors can use the Index to promotion mean for the overall level of consumer demand in the Australian economy in in the disaffect-off ahead months and dwelling. They can glean vital economic sentiment useful in anticipating employment needs, product pricing, and investment planning. Australian policymakers and the Reserve Bank of Australia (RBA), Australian’s central bank, can use the Confidence Index to in the future form monetary and fiscal policy.
Generally speaking, a high reading is seen as utter (or bullish) for the Australian economy and the Australian dollar (AUD), whereas a low reading reflects negative (or bearish) position of view. As a leading indicator, it can pay for sustain caution of major economic trends and turning points. For example, the Index was at an all period high of 123.94 Index Points in May of 2007 in the back declining steeply more than the considering year as the global economy plummeted into the Great Recession.
called the Westpac Melbourne Institute Consumer Sentiment Index.