Australian Consumer Confidence Gains on Jobs, Growth (Update1)
By Shamim Adam
Sept. 12 (Bloomberg) -- Australian consumer confidence rose in September
after the central bank left interest rates unchanged and employers hired more
workers than expected last month.
The confidence index gained 4.2 percent from August to a seasonally adjusted
115.7, according to a Westpac Banking Corp. and Melbourne Institute survey of
1,400 people, released today in Sydney. A reading higher than 100 shows
optimists outnumber pessimists.
Australia's lowest jobless rate in 33 years is boosting an economy that
expanded at a faster-than-expected pace in the second quarter. Businesses are
also reporting record profits and sales as consumer spending increases and
demand for commodities climb.
``Steady interest rates, a modest fall in petrol prices and continuing good
news on the labor market and the broader economy would have been the
supporters'' of the increase in consumer confidence, said Bill Evans, Westpac's
Sydney-based chief economist. ``These factors have clearly offset any concerns
emanating from global financial markets.''
The Australian dollar and stocks climbed today. The currency traded at 83.32
U.S. cents at 10:40 a.m. in Sydney from 82.68 cents yesterday. The S&P/ASX 200
stock index gained 0.9 percent to 6,288.70. The yield on the 10-year bond rose
1 basis point to 5.85 percent.
Economic Growth
Australia's economy expanded almost twice as fast as economists forecast last
quarter as business investment surged. Gross domestic product climbed 0.9
percent from the previous three months, the Bureau of Statistics said last
week. The economy advanced 4.3 percent from a year earlier, the fastest pace in
three years.
Consumers also remained optimistic as the average price of gasoline dropped
in five of the past six weeks. Prices have fallen 2.5 percent since the last
week of July, according to the Australian Institute of Petroleum.
An index measuring the state of family finances compared with a year earlier
rose 7 percent, today's confidence report showed. Another index measuring
whether now is a good time to buy a major household item, such as a television
or appliance, gained 0.6 percent.
Family Finances
Consumers were also more confident on family finances as the strengthening
economy created more jobs, the report showed.
Employers hired 31,900 extra workers in August as miners expanded to meet
soaring Chinese demand for commodities and retailers opened new stores.
Westpac's index measuring the outlook for family finances for the next 12
months advanced 0.8 percent from August.
Its index measuring consumers' outlook on the economy for the next 12 months
climbed 7.3 percent, while the outlook for the next five years gained 6
percent.
The overall confidence index jumped 14.3 percent in September from a year
earlier.
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