SYDNEY (Reuters) - A measure of Australian consumer confidence improved for a second month in November, with survey respondents more upbeat on their finances and the long-run economic outlook.
Wednesday's figures showed the Melbourne Institute and Westpac Bank <WBC.AX> index of consumer sentiment rose 2.8 percent in November, from October when it gained 1.0 percent.
The index has now regained all the sharp drop suffered in September as political instability and hikes in mortgage rates by most of the big banks soured the public mood.
The November reading, compiled from a survey of 1,200 people, was up 4.7 percent on a year earlier at 104.3, meaning optimists outnumbered pessimists.
"This is a surprisingly strong result," said Westpac Chief Economist Bill Evans.
"In particular, respondents are much more positive about their own finances," he added. "That is despite consistent reports around weakness in the housing markets in the major capitals and the sharp falls in the equity market through October."
The survey's index of family finances compared to a year ago bounced 4.9 percent in November, to its highest since February 2016, while the outlook for the next 12 months added 3.2 percent.
Its measure of economic conditions for the next 12 months also rose 1.7 percent, while the measure for the next five years surged 9.7 percent as worries about a global trade war seemed to ease a little.
While falling home prices have been crimping sentiment, they were also encouraging demand for houses. The index on whether it was a good time to buy a dwelling jumped 11.8 percent in November and was up almost 17 percent on a year earlier.
However, respondents still appeared cautious on spending too much. The index on whether it was a good time to buy a major household item slipped 3.5 percent to an 18-month low.
A third of respondents also expect to spend less on Xmas gifts than they did last year, with 56 percent expecting to spend about the same and just 10 percent planning to spend more.
"Despite the higher reads in overall confidence this question suggests that we are unlikely to see any improvement over last year's lacklustre Xmas spend," said Evans.
(Reporting by Wayne Cole; editing by Richard Pullin)
