Westpac Economics Weekly Video Update

This week saw positive updates on consumer sentiment and the labour market. Together they give the RBA strong justification to remain on hold and await further information on the health of the domestic and global economy come 2016. The November Westpac-MI Consumer Sentiment release provided a number of interesting contrasts: there was evidence of the impact of rate increases on family finances, but this was more than offset by the persistent positive impulse generated by the new Government leadership; also, while sentiment toward the housing market continues to sour, consumers look to be gaining greater confidence in the labour market, resulting in a strengthening of discretionary spending intentions.