Crack out the Champaign, consumer confidence is at 32 year highs. Don’t worry, I can afford Champaign – I’ve just put it on my 2nd credit card – but, I’m confident I can pay it off maybe next year.
The Westpac/Melbourne Institute index of consumer sentiment rose to 123.9, up 7.5% since last month. The index is now the highest it has been since it started in January 1975.
"Mr Evans attributed the strong rise to a major vote of confidence by consumers in last week’s federal budget."
Since the Liberal Government came to power in March 1996, household debt to disposable income has increased from 68.7% to over 160% and Net Household Savings has fallen from 6.4% with the average Australian, today, spending more than they earn. Australians have spent more than they earn in last 6 of those 11 years. No wonder confidence is high, it’s all funded by debt.
» Consumer sentiment at 32-year high – The Australian, May 16, 2007