Australian consumer sentiment has reached an all-time high in the wake of this month's big-spending budget, according to a survey released Wednesday. The Westpac Melbourne Institute Index of consumer sentiment, which rose 7.5 percent to a record 123.9 points in May.
Also benefited from a 30-year low in unemployment and the reduced risk of an interest rate hike, chief economist Bill Evans said. The index has risen 18.8 percent over the past year. "This is an extraordinary result," Evans said.
"The index has now reached its highest ever level since the survey began in January 1975." Evans said consumer confidence was buoyed by the May 8 budget which included 31.5 billion dollars (26.25 billion US) in tax cuts over the next four years and promised one-off payments to the elderly and carers.
The budget, which was supported by insatiable global demand for Australia's mining products, particularly from China, showed a boom time surplus of 13.6 billion dollars for the fiscal year 2006-07.