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While overseas turmoil weighs on confidence of consumers, a survey shows that consumer sentiment has turned out positive in April. This results to a rise by 1.2 per cent in April to 105.3 as reflected in the Westpac-Melbourne Institute Index of Consumer Sentiment. Just last March, a 2.4 per cent fall in consumer sentiment index was noted.

This figure followed after retail trade figures in February showed an increase of 0.5 per cent in spending. This is actually higher than what most economists predicted to just be a 0.4 per cent increase.

Bill Evans, Westpac senior economist, said this figure is fairly predictable and lackluster. He added by saying that over the month, households had been exposed to both positive and negative influences. He continued by saying that the positive side is that the Reserve Bank has kept its rates steady for the fifth consecutive month.

“Job prospects and security remain strong. It was recently announced that employment increased by 37,800 jobs in March, reducing the unemployment rate to 4.9 per cent,” Mr. Evans said.

He notes that the negative side is that there are the frightening events in Japan and the ongoing turmoil in Middle East which have caused the prices of crude oil to rise.

The retail trade of February showed sales of furniture, floor coverings, and electronic goods. Sales of clothing, footwear, newspapers, books, cafes, and restaurants also rose despite the rising prices of commodities including petrol costs.

The increase in the consumer sentiment index in April was on whether it is an appropriate time to buy and invest on a major household item. It went up by 3.5 per cent.

The index that measured family finances rose by 1.4 per cent from March while the outlook for economic conditions for the next 12 months increased to 3.4 per cent. The five-year outlook fell by 3.3 per cent.

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Source: http://www.news.com.au/money/money-matters/consumers-warm-to-spending-slowly/story-e6frfmd9-1226038434446