Australia Westpac consumer sentiment rebounded notably by 16.4% to 88.1 in May, up from 75.6. That’s also the biggest gain since record began nearly fifty years ago, reversing much of April’s -17.7% decline. However, the index is still “relatively weak by historical standard”, being the second lowest reading since global financial crisis and “firmly in pessimistic territory”.
Looking at some big movers, the “economy, next 12 months” sub-index jumped 32.6% to 71.2, up from 53.7. The prospect of earlier than expected reopening has “soothed some of the worst fears”, even though consumers still do not expect a return to growth any time soon. The “time to buy a major item” sub-index surged 26.7% to 96.6, up from 76.2. Retailers can expect more “foot traffic” as restrictions ease.
Westpac also noted that today’s results “provide genuine reason for optimism that the Australian economy can surprise forecasters on the upside in these highly uncertain times.”.
Also from Australia, wage price index rose 0.5% qoq in Q1, matched expectations.
