Consumer confidence rebounds 8.1 per cent
Article by Mozo
The latest consumer confidence index by the Westpac-Melbourne Institute may suggest that those with debit cards could be more likely to hit the high streets again as it rose by 8.1 per cent.
In August, the index reached a two-year low, falling to 89.6 points, but this month it rallied to 96.9.
Bill Evans, chief economist at Westpac, attributed the rise to the fact that people are growing more convinced that the cash rate will not be increased by the Reserve Bank of Australia (RBA).
"Concrete evidence of the improved outlook for interest rates came shortly after the August survey when the major banks actually lowered their fixed rate mortgage rates," he stated.
However, he noted that while consumer confidence has picked up – something that may indicate more people are inclined to purchase goods with their debit cards – the overall levels are still "weak".
Aussies seem more inclined to use debit cards at the moment, as a recent CommSec analysis of RBA data revealed an 18.9 per cent increase in spending using this kind of plastic.
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