A measure of Australian consumer sentiment surged in September as the country's coronavirus-stricken Victoria state managed to curb the spread of the disease while other states prevented a second wave.
The Westpac-Melbourne Institute index of consumer sentiment jumped 18% in September from August, when it dropped 9.5%.
Despite the hefty gains, the index was down 4.5% on September last year at 93.8, meaning pessimists outnumbered optimists.
Westpac Chief Economist Bill Evans said the September outcome was a 'pleasant surprise'.
"Victoria's new cases slowed markedly once lockdown measures were in place and we saw no evidence of second waves in either NSW or Queensland," Evans said.
However, there was still extreme nervousness about the near-term economic outlook, Evans cautioned.
The sub-index measuring the outlook for the economy over the next 12 months surged 41% but was still 18% below its level a year ago.
The index for the next five years rebounded strongly to be up about 19% over the month.
The measure of family finances compared to a year earlier climbed 11.2% to 87.5 while the outlook for the next 12 months jumped as well to swing into positive territory.
In a welcome sign for retailers, the measure of whether consumers felt it was a good time to buy a major household item jumped 16.3% though it was still 12.1% below the levels of a year ago.
Westpac Banking Corp <WBC.AX> and the Melbourne Institute surveyed 1,200 people from across the county
(Reporting by Swati Pandey; Editing by Shri Navaratnam)
