Consumer confidence returns to the positive.
Consumer sentiment has returned to positive and although Australians see now as a good time to make large purchases, many still believe the best place for additional cash is in a savings account or fixed interest investment such as term deposits.
After two months of decline in consumer sentiment following concerns over the federal budget, the Westpac Melbourne Institute Consumer Sentiment Survey has recorded a 4.7 percent increase in confidence in June to 102.2 points. Anything over 100 points indicates that optimists outweigh the pessimists in the economy.
The index showed a large number of respondents intended to purchase big tickets items such as a car or property, thanks to the low cost of financing. However, the survey also found that respondents overall still have a negative outlook on the future of the economy and this will likely hold consumers back from making a decision to purchase.
"When rates are cut from already super low levels to 53-year lows, it does send the message that there may be something wrong with the health of the domestic landscape," said CommSec chief economist Craig James.
According to Mr James, around a third of Australians still believe the safest place to store any additional savings is in the bank.
Those looking for the best interest rates for their additional savings can compare savings accounts and term deposits on Mozo.
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