Consumer confidence surges

There’s been an extraordinary surge in consumer confidence, according to a new survey.

But the OECD has forecast that the Australian economy will shrink by 0.4 percentage points this year.

However the Treasurer, Wayne Swan, said the OECD report also confirmed that the Australian economy is “outperforming” every other advanced economy, “in the face of a savage global recession.”

Mr Swan said the OECD report also confirms that Australia has lower debt and deficit levels than other advanced economies.

The survey, conducted by Sensis, shows consumer confidence rising by a record 18 per centage points.

The results, released today, show that almost six out of ten Australians are now confident about their financial prospects, over the coming 12 months.

The report’s author, Christena Singh, said the Sensis consumer confidence index now stands at 39 per cent.

That is its highest level since February last year, when the incicator stood at 44 per cent.

However this measure is still below the record level of 61 per cent, seen in December 2007.

Even so, the current level is still remarkable, when set against the current global economic crisis.

Especially as the World Bank has tipped, only this week, that the global economy will contract by 2.9 per cent over the coming year.

Mr Singh said the survey showed that Australians, who have jobs, are taking a rosy view of the future.

“Employment is the key driver of consumer confidence in Australia at the current time,” Ms Singh said.

“Having a secure job is the key reason for being confident, while umemployment is the key reason for being worried,” she added.

But the survey revealed a touch of realism, too.

“It is interesting to note that while Australians are increasingly optimistic about their financial prospect, they (also) believe the Australian economy is contracting,” Ms Singh said.