The assessment for Australian consumer sentiment climbed to its highest level since late July 2013 despite increasing optimism towards the economic forecast and the expected future of tax reduction. The Westpac Bank and the Melbourne Institute conducted a survey on 1, 200 people to be issued today, and noted that the consumer sentiment index had increased to 3.9 percent this month and 0.3 percent growth in the previous month. While the index rose by 9.8 percent on July 2017 at 106.1 which clearly indicates that optimists dominated over the pessimists. The poll was made during the week when consumers heard about the news of Reserve Bank of Australia (RBA) cash rates held at a record low of 1.50 percent for 23 consecutive months. This was followed by the word of the Liberal National government to reduce income taxes by A$140 billion in the next seven years despite its back-loaded gains. While the measure for economic status for the next 12 months accelerated by 3.9 percent and 9.8 percent growth is predicted for the next five years. Also, measure for the family household is projected to expand modestly compared in 2017 expansion of 2.3 percent, as the forecast for the next 12 months grew by 2.1 percent. The index that shows the appropriate time to purchase a major household item ramped up by 1.7 percent only, indicating continuous caution on spending. Consumers were also leery on the housing index as it declined to 2.5 percent in July, while projections for house price index fell to 6.2 percent which is the lowest since early 2016.
