What is the 'Westpac Consumer Confidence Index'

The Westpac Consumer Confidence Index is an index measuring the level of consumer confidence in Australia. The Westpac consumer confidence index is published by the Westpac group and is used to measure household economic expectations by averaging five different indexes that measure separate aspects of consumer sentiment and fiscal health.

The index is also called the Westpac Melbourne Institute Consumer Sentiment Index.

BREAKING DOWN 'Westpac Consumer Confidence Index'

The Westpac Consumer Confidence Index measures household views on current buying conditions in Australia, their views on eco-political policies such as taxation, their views on where they would invest at the present time and their views on economic news like inflation and employment numbers. The Westpac Group published numerous economic reports intended to measure Australia's economic climate, including retail sales figures, GDP figures and interest rate expectations.

Similar to the U.S. Consumer Confidence Index, the Westpac Consumer Confidence Index is a useful barometer measuring the degree of optimism on the state of the Australian economy, its primary gauge captures consumers sentiment as expressed through their levels of savings and spending. As a prime of reference, the Westpac Consumer Confidence Index's methodology is similar to the University of Michigan Consumer Sentiment Index, which is conducted by the University of Michigan's Institute for Social Research.

To measure changes in the level of consumer confidence in economic activity, Australia's Consumer Confidence Index uses five indices to reflect consumers’ evaluations of:

  • Household financial situations over the past year and the coming year
  • Anticipated economic conditions over the coming year and the next five years, and
  • Buying conditions for major household items

Consumers are also surveyed for attitudes toward buying conditions for cars and dwellings, their preferred place for savings, and their economic news recall. Generally speaking, a high reading is seen as positive (or bullish) for the Australian dollar (AUD), whereas a low reading reflects negative (or bearish) outlook.

Australian policymakers and the Reserve Bank of Australia (RBA), Australian's central bank, can use the Confidence Index to help form monetary and fiscal policy. The private sector can also glean valuable economic sentiment useful in anticipating employment needs, product pricing, and investment planning.

  1. State Street Investor Confidence ...

    The State Street Investor Confidence Index measures institutional ...
  2. Consumer Confidence Index - CCI

    The Consumer Confidence Index (CCIA) Survey by the Conference ...
  3. NAB Business Confidence Index

    The NAB Business Confidence Index is the key measure of business ...
  4. RBC Consumer Attitudes And Spending ...

    The RBC Consumer Attitudes And Spending By Household Index (RBC ...
  5. Michigan Consumer Sentiment Index ...

    The Michigan Consumer Sentiment Index is a monthly survey that ...
  6. Economic Conditions

    Economic conditions are the state of the economy in a country ...
Related Articles
  1. Insights

    Consumer Confidence Index

    The Consumer Confidence Index is the result of a monthly survey of 5,000 U.S. households by the Conference Board that measures how optimistic or pessimistic consumers are about the economy's ...
  2. Insights

    Understanding the Consumer Confidence Index

    Consumer confidence index is an important economic indicator for investors. Find out what it means and how it's calculated.
  3. Investing

    Westpac Adds 1,622 Shares of TripAdvisor (TRIP)

    Australian bank and financial services provider Westpac recently increased its stake in shares of travel website company TripAdvisor Inc.
  4. Insights

    How To Read The Michigan Consumer Sentiment Index

    The Michigan Consumer Sentiment Index has provided a key leading indicator for investors and economists for decades. This respected index is published monthly from the results of random telephone ...
  5. Investing

    3 Australian Mutual Funds to Avoid

    Learn about several catalysts that may have a negative effect on the Australian economy. Discover three mutual funds to avoid in 2016.
  6. Insights

    5 Factors That Could Send The United States Economy Into A Double-Dip Recession

    A decline in consumer confidence and stock market correction could be enough to sink the economy again.
  7. Trading

    5 Reports That Affect The British Pound

    The pound is one of the world's most popular traded currencies, and is heavily impacted by these factors.
  8. Retirement

    Retire in Australia with $200,000 of Savings?

    Maybe. Thanks to a strong U.S. dollar, Australia has become more affordable, at least for Americans.
  1. Consumer Confidence Vs. Consumer Sentiment

    Is there any real difference between consumer confidence and consumer sentiment? Read Answer >>
  2. Which economic factors most affect the demand for consumer goods?

    Understand how key economic factors such as inflation, unemployment, interest rates and consumer confidence affect the level ... Read Answer >>
  3. How do changes in interest rates affect the spending habits in the economy?

    Examine the factors that typically determine how consumers react to interest rate changes in terms of increasing their levels ... Read Answer >>
  4. What are the most common market indicators to follow the U.S stock market and economy?

    Understand some of the key indicators analysts use to follow the U.S. stock markets and to assess the overall condition of ... Read Answer >>
  5. How does revolving credit differ from a general line of credit?

    Examine the consumer goods sector, which accounts for nearly one-third of consumer spending, and learn which goods account ... Read Answer >>
  6. What economic indicators are important for investing in the automotive sector?

    Discover the most important economic indicators when investing in the automotive sector: auto sales, unemployment and consumer ... Read Answer >>
Hot Definitions
  1. Risk Tolerance

    Risk tolerance is the degree of variability in investment returns that an individual is willing to withstand.
  2. Initial Coin Offering (ICO)

    An Initial Coin Offering (ICO) is an unregulated means by which funds are raised for a new cryptocurrency venture.
  3. Federal Funds Rate

    The federal funds rate is the interest rate at which a depository institution lends funds maintained at the Federal Reserve ...
  4. Ethereum

    Ethereum is a decentralized software platform that enables SmartContracts and Distributed Applications (ĐApps) to be built ...
  5. Perfect Competition

    Pure or perfect competition is a theoretical market structure in which a number of criteria such as perfect information and ...
  6. Restricted Stock Unit - RSU

    A restricted stock unit is a compensation issued by an employer to an employee in the form of company stock.
Trading Center