Confidence takes dive

SOARING power bills and other hits on the household budget mean consumers remain downbeat despite a better jobs outlook, an economist says.

The latest Westpac-Melbourne Institute Index of consumer sentiment rose 2.5 per cent in September to 97.9 points, from 95.5 in August, but was 3.5 per cent weaker compared with a year ago.

Westpac chief economist Bill Evans says the rising cost of living and worries about a potential interest rate hike have stymied consumer confidence this year.

“These factors are more than offsetting the boost from an improved outlook for jobs,” he said.

Consumer expectations for finances over the next 12 months fell, with that subindex dipping 2.1 per cent, reversing all of last month’s gain.