The Australian Financial Review --- Page: 5 : 14 December 2006 Original article by Adrian Rollins
ABIX Summary
A new survey of consumer sentiment in Australia has shown a strong bounce back in confidence. The Westpac Bank/Melbourne Institute consumer sentiment index rose by 11.8% in early December 2006. It appears that consumers have coped well with the interest rate rise in November 2006 and the two previous ones. Economists are divided about what this means for interest rates in 2007. Some believe that the Reserve Bank of Australia board will raise interest rates when it meets on 6 February 2007, while others are not so sure. Analysts are divided about whether the surge in consumer confidence will translate into a great deal of extra spending at Christmas time in 2006.
