15 Nov 2012

Consumer confidence on rise in Australia

9:40 am on 15 November 2012

There has been a surprise jump in consumer confidence in Australia, as a series of interest rate cuts this year begins to sway households.

The Westpac-Melbourne Institute consumer sentiment index rose by 5% in November to 104.3.

The ABC reports it is the highest level in 1½ years.

Westpac chief economist Bill Evans said consumer sentiment had been stubbornly low through the year.

"The long run of interest rate cuts - 150 basis points from the Reserve Bank over the last 12 months - is starting to get some traction," he said.