Saturday, August 17, 2013

Consumer sentiment improves

A hopeful offset to the negative business expectations for the September quarter can be found in the Westpac Melbourne Institute Index of Consumer Sentiment, which rose by 3.5% from 102.1 in July to 105.7 in August.

Westpac Chief Economist Bill Evans notes that "a number of important forces were operating over the month to impact Sentiment. Most important were the decision by the Reserve Bank to cut its overnight cash rate by 0.25% and the full pass through of this cut to mortgage rates; the announcement of the September 7 election date; the government’s Economic Statement which revealed a further deterioration in the fiscal position; and the consolidation of the Australian dollar at around 15% below its recent peaks back in April".

The improvement in consumer sentiment will hopefully translate into greater preparedness by dental patients to attend for more regular checkups, which have been delayed in recent months.