‘A whiff of good news does a lot’: Consumer sentiment reportedly on the rise

Westpac Senior Economist Matthew Hassan says “a whiff of good news does a lot for sentiment” after a new survey suggests consumer optimism is rising.

“Also in the mix here are some clearer signs that we are starting to get on top of inflation,” Mr Hassan told Sky News Australia’s Business editor Ross Greenwood.

“We are well below the 100 line and still in pessimism, but we seem to have broken out of that 77 to low 80s range that we were stuck in.

“The two components that really moved were buyer sentiment, starting to tap into moderating inflation story and expectations for the year ahead – interest rate cuts may be starting to come back onto the table.

“Tax cuts are definitely slated and we saw the broadening of the stage three tax cuts definitely played through to the middle and lower income expectations.”