Consumer sentiment in Qld among the highest of the States

Consumers in Queensland has grown again, rising 3.3 per cent in the month according to the latest Westpac-Melbourne Institute Consumer Sentiment Index.

Treasurer and Minister for Trade and Investment Curtis Pitt said this was well above the Australian average of 0.4 per cent.

“This places Queensland second on the table of surveyed States behind New South Wales (103.3) and ahead of Victoria (97.3), South Australia (89.3) and Western Australia (77.4),” Mr Pitt said. 

“The July survey saw Queensland’s consumer sentiment rise 3.3 per cent in the month to 97.5 in original terms.

“Although an index level below 100 indicates pessimists outweigh optimists, so we still have some work to do and we are stepping up to that challenge.”

Mr Pitt said the Westpac-Melbourne Institute report showed the two components relating to family finances rose in July.

“Both the components relating to ‘family finances versus a year ago’ and ‘family finances in the next 12 months’ rose in July – up 13.8 per cent and 4.7 per cent respectively,” he said.

Nationally the consumer sentiment index rose 0.4 per cent seasonally adjusted to 96.6 in July 2017, marking the eighth consecutive month the national index has been below the neutral mark.

Westpac believes this suggests consumer spending nationally is likely to remain subdued.

Westpac also felt recent developments regarding interest rates – specifically banks increasing rates on interest-only mortgages as well as media speculation about prospective interest rate rises in the future – did not damage confidence as much as anticipated.

Westpac stated that “conditions in the housing market appear to be stabilising”, with the ‘time to buy a dwelling’ index rising 3.1 per cent in the month, having fallen by 10 per cent in the first half of 2017.

Westpac went on to note that various state government assistance packages for first home buyers appear to be a large contributor to the monthly rise, with the ‘time to buy a dwelling’ index for those aged 25-34 increasing 36 per cent in July.

Mr Pitt said first home buyers are among the big winners in the 2017-18 Queensland budget, with an extension to the $20,000 First Home Owner’s Grant would be extended.

“The Palaszczuk Government recognises how difficult it is for first-home buyers to get into the housing market,” he said.

“This is one of the most effective ways of helping families to get a start with a new home while simultaneously creating construction jobs and spurring on the economy.

“If all the approved grants leverage new dwellings of $750,000 they would represent almost $3.7 billion worth of activity.

“Queensland’s established housing market is also looking healthy, which is encouraging for homeowners across the state.

“However, we recognise that there are regions which need our assistance and that’s where this grant can have an even greater effect in regional Queensland, where $20,000 may be more than half of the 10 per cent deposit for a median priced house.”

For more information visit: https://firsthomeowners.initiatives.qld.gov.au/

Contact:  0419 945 546