Consumer confidence surges

9 Apr 2009, 10:26 am   -   Source: AAP
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It is feared that the recent surge may be short lived (AAP)

It is feared that the recent surge may be short lived (AAP)

Consumer confidence rose 8.3 per cent for the first time in four months as cash payments to taxpayers boosted sentiment.

Consumer confidence surged for the first time in four months in April as equity markets rebounded and cash payments to taxpayers boosted sentiment.

The Westpac-Melbourne Institute index of consumer sentiment rose 8.3 per cent to 92.7 points seasonally adjusted from 85.6 points in March.

After recording falls for the three previous months the consumer index in April posted the survey's highest reading since February 2008.

However the index remains below 100 points indicating pessimists are outweighing optimists for the 15th month in a row.

Still Westpac chief economist Bill Evans said the April result is surprisingly strong.

Confidence may be short lived

Another jump in the jobless rate today and a miserly mortgage rate cut by the retail banks this week could quickly wipe the smile from consumers' faces.

Today's figures will come as consumer confidence has soared surprisingly to a 13-month high.

The latest sentiment survey released yesterday was taken before the decision by most major banks to pass on only a fraction or nothing of Tuesday's 25 basis points cut in the official cash rate.
 

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