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Confidence and spending move in the right direction

By Louise Morrin

There’s cause for celebration in the Australian economy at the moment, as two major indicators suggest people across the country are more optimistic than ever. Not only has consumer confidence improved, but there’s also evidence that people are spending more – good news if you’re hoping to sell property in Beverley Park.

Spend, spend, spend

Results of April’s Commonwealth Bank Business Sales Indicator (BSI) show spending was up for the 15th month in a row, increasing 0.2 per cent from March levels. This marked a slight improvement for the monthly gain of 0.1 per cent seen over the past three months.

New South Wales saw the strongest rise in spending, where it increased 0.8 per cent month on month. In annual terms, sales in the state increased 8.1 per cent.

“The recent interest rate reduction suggests that the BSI will lift further in coming months, though the Federal Election may result in businesses checking their spending plans,” noted CommSec chief economist Craig James.

Things are looking up

This recent rise in spending, coupled with improved consumer confidence, could mean good times lie ahead for the Australian economy. The latest ANZ-Roy Morgan Australian Consumer Confidence Index increased 0.5 per cent in the wake of the cut to the official cash rate, once again suggesting the market could improve for real estate in Beverley Park.

Consumers were shown to be particularly optimistic about their personal finances, with this particular indicator rising 3.4 per cent over the past week. In terms of how they perceived their finances compared to a year ago, this indicator marked an increase of 1.4 per cent.

ANZ Senior Economist Jo Masters said the threat of the forthcoming election doesn’t seem to be dampening people’s spirits, so it will be interesting to see whether or not this remains the case.

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