Australia: State variations in consumer sentiment - Westpac

Matthew Hassan, Senior Economist at Westpac, suggests that improved sentiment in the mining states of Australia has been a significant underlying support to sentiment nationally over the last year.

Key Quotes

“Housing may be a bigger driver of state variations going forward.”

“Consumer sentiment doesn't always differ across regions.”

“The survey detail shows state variations on finances tend to be more around current conditions than expectations. On the economy, the divergences tend to be on the 12mth view rather then the 5yr view. Notably, while unemployment expectations are clearly influenced, state variations have not been a major theme for risk aversion up until very recently.”

“State variations in sentiment have narrowed over the last year, reflecting improved reads in the mining states. For headline sentiment, this effect alone is an underlying boost worth about 1-1.5pts. Going forward, differences in housing markets are more likely to be key.”