Westpac preview their (in conjunction with Melbourne Institute) Consumer Sentiment data for August

clear improvement in July

  • most positive since November 2013
  • overall level of sentiment is still not strong
  • index averaged 108.3 over the ten years prior to the GFC with peaks well above the 110 mark
  • Much of the improvement over the last year reflects a more balanced growth profle across states

Factors that may influence this month include:

  • the RBA's decision to leave official rates on hold
  • recent comments emphasising that any move is still a long way off
  • continued slippage in dwelling prices
  • Financial markets have been relatively steady, the ASX up marginally since the last survey and the AUD down slightly. Offshore, global trade tensions have again been to the fore.