Consumers are feeling more optimistic about family finances in the year ahead, which is a positive indicator for growth in retail spending and the economy, according to Retail Council CEO Anna McPhee (pictured), following the release of the Westpac-Melbourne Institute Consumer Sentiment Index that rose 4.2% in October from 93.9 points in September to 97.8 points in October.
“The reading coupled with a 20% rise in how consumers are feeling about economic conditions over the next 12 months are setting positive foundations for the retail sector to continue to grow the economy, particularly leading into the busy Christmas trading period.
“Although consumer sentiment rose in October, retailers will be looking for not only more stability in consumer sentiment readings in the months ahead to Christmas, but a reading above 100, where consumers are more optimistic than pessimistic.
“The lift in consumer sentiment is a positive sign for the economy and the sector but time will tell whether more needs to be done to rebuild confidence that will encourage further improvements to retail activity and the recurring benefits this delivers to the economy more broadly,” McPhee said.