The Reserve Bank of Australia’s (RBA) decision to raise interest rates in this month has failed to dent consumer confidence, a report says.

The Westpac-Melbourne Institute consumer sentiment index rose 0.3 index points in March to 117.3 points, an increase of 0.2 per cent.

The RBA lifted the cash rate 25 basis points to 4.0 per cent, from 3.75 per cent, at its March board last week.

It was the fourth rate hike since October last year.

Westpac chief economist Bill Evans said it was a “solid result given he backdrop of an official rate rise”.
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A surprising fall in consumer confidence this month shows households are still worried interest rates will rise despite the central bank holding rates steady in February, a survey says.

The Westpac-Melbourne Institute index of consumer sentiment fell 2.6 per cent to 117.0 points in February, from 120.1 in January.

However, the number of optimists in the survey still outweighed the pessimists.

Westpac chief economist Bill Evans said the fall was “a little surprising” after the Reserve Bank of Australia (RBA) left the cash rate unchanged at 3.75 per cent on February 2.

Most market economists had expected a quarter of a percentage point rise to 4.0 per cent.
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Consumer confidence fell in February amid householder concerns about future increases to interest rates, a survey shows.

The Westpac-Melbourne Institute index of consumer sentiment fell 2.6 per cent to 117.0 points in February, from 120.1 in January.

Westpac chief economist Bill Evans said the fall was a “little surprising” after the central bank’s decision to hold rates in February.

The Reserve Bank of Australia (RBA) stunned financial markets by leaving the overnight cash rate unchanged at 3.75 per cent on February 2.

Most market economists expected a quarter of a percentage point rise to 4.0 per cent.
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Weaker discretionary spending dragged retail sales lower in September as the stimulus from the federal government’s cash payments receded.

The result is likely to encourage the Reserve Bank of Australia (RBA) to leave interest rates unchanged in December, after hiking in each of October and November, economists said.

Retail sales fell 0.2 per cent in September to a seasonally adjusted $19.719 billion, the Australian Bureau of Statistics (ABS) said on Wednesday.

Over the September quarter, retail sales fell by 0.4 per cent in seasonally adjusted volume terms.

The monthly fall confounded market expectations for a rise of 0.5 per cent, while the quarterly decline was as expected.
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RP Data Ltd says improving consumer confidence is driving a rise in property sales deals, even though affordability remains low.

The listed property information provider also said that while it would not give any earnings guidance for 2009/10, it expected to gain market share as the economic recovery gathered pace.

“The company continues as a market leader and as such will be in a position to gain market share as the general market improves and real estate activity increases in line with the market,” chairman Ian Fraser told shareholders at the company’s annual general meeting on Tuesday.

Mr Fraser said RP Data saw several positive signs that market conditions are improving.
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David Jones chief executive Mark McInnes says the next 12 months for the retail sector will be difficult, but consumer confidence appears to be returning.

The up-market department store chain last month sharply upgraded its expectations for fiscal 2009 second half earnings and annual earnings.

Mr McInnes said on Sunday that sales had picked up in May and June on the back of federal government’s fiscal stimulus payouts and more normal trading in the equities market.
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Consumer confidence fell in May as Australians reacted negatively to the federal government’s 2009/10 budget handed down last week, a survey shows.

The Westpac-Melbourne Institute index of consumer sentiment fell 4.3 per cent to 88.8 points, from 92.7 points in April.

The index remains below 100 points, signalling pessimists continue to outweigh optimists, for the 16th month in a row.

Westpac chief economist Bill Evans said the key factor behind the fall would have been consumers’ assessments of the budget, which was released before the latest survey was conducted.
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Another jump in the jobless rate on Thursday and a miserly mortgage rate cut by the retail banks this week could quickly wipe the smile from consumers’ faces.

Consumer confidence has surprisingly soared to a 13-month high.

The latest sentiment survey released on Wednesday was taken before the decision by most major banks to pass on only a fraction of Tuesday’s 25 basis points cut in the official cash rate.
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Confidence unexpectedly dropped in February with consumers seemingly unimpressed by mortgage rate cuts and the federal government’s planned $42 billion stimulus package.

The Westpac-Melbourne Institute index of consumer sentiment for February, released on Wednesday, fell 4.6 per cent from the previous month.

“This is truly a unique result,” Westpac chief economist Bill Evans said.
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