Australia: Westpac consumer confidence rises 2.2% month on month

Australia: Westpac consumer confidence rises 2.2% month on month

In a positive development for the Australian economy, the Westpac Consumer Confidence Index (WCCI) rose by 2.2% month on month, according to data released on May 13, 2025. This increase, which is expected to be announced at 7:30 WIB, indicates a significant boost in consumer sentiment, following a period of geopolitical uncertainty and economic volatility [2].

The WCCI is a crucial indicator of consumer spending patterns and economic activity. An increase in consumer confidence often translates to higher spending on goods and services, which can stimulate economic growth. The latest data suggests that Australian consumers are becoming more optimistic about their personal financial situations and the broader economic outlook.

This positive trend comes on the heels of Westpac's first-half financial results, which saw a 1% drop in net profit due to shifting global trade policies and increased funding costs [1]. However, the bank's interim dividend remained stable at A$0.76 per share, and mortgage delinquencies and impairment charges remained low, indicating resilience in its core business operations.

The rise in consumer confidence is particularly notable given the backdrop of the Australian Labor Party's historic second consecutive term, where housing costs were a key issue. The new government's focus on providing more housing and ensuring sustainable access to cash could further boost consumer sentiment and economic activity.

Looking ahead, investors and financial professionals will be closely watching the upcoming ECOFIN meeting from Europe and other economic indicators scheduled for release throughout the day. These include the Treasury Japan auction, unemployment rates in the UK, and various economic sentiment indices from both Europe and the United States. The data from these events could provide further insights into the global economic landscape and its potential impact on Australian markets.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3RC080:0-australia-s-westpac-flags-global-trade-risks-shares-slide-after-profit-miss/
[2] https://www.javafx.news/kalender-ekonomi-hari-selasa-13-mei-2025-7-data-berita-forex-penting-130525/