Australian consumer confidence surged to near two-year highs in August as vivid evidence the global slump has largely bypassed Australia encourages hopes for a quick economic rebound.
An index of consumer sentiment in Australia rose 3.7% in August from July to its highest levels since October 2007, compilers Westpac and the Melbourne Institute said in a statement.
Westpac said the index rose to 113.4 points in August in seasonally adjusted terms from 109.4 points in July, and in annual terms the consumer sentiment index rose a seasonally adjusted 31.6%.
As a result, the index is now up 27.8% since May, its largest three-month gain since the survey began in 1975, and has risen 43.6% from its 2008 trough.
"The message is clear: as far as consumers are concerned, the worst of the current downturn appears to have passed," said Westpac economist Matthew Hassan. He noted the mood was probably buoyed by data showing house prices picked up 4.2% in the second quarter, and a still strong jobs market, with unemployment holding relatively firm at 5.8% in July.
"These two pieces of news helped alleviate two of the biggest sources of consumer anxiety over the last year: fear of losing money on their biggest single asset - the family home - and fear of losing their jobs," Hassan added.