Westpac sees consumer sentiment scorching to the highest level in 11 years.
Consumers just don't get much more upbeat or sprightly than this in Australia.
Full report from Westpac is here (or click on the image below):
The house price expectations index increased 135 per cent from a year ago, which is fairly self-explanatory.
The time to buy a dwelling index has already begun to decline, however, and now sits below the long run average...so that's another indicator suggesting that the frenzy is passing.
Source: Westpac
Australia's ASX 200 stock market index has now all but completed a most magnificent round trip in travelling from 7,140 to under 5,000, and now back up to 7,000.
Clearly the economic outlook for Australia is buzzing, and this is well reflected in the above above.
Concern about going 'all-in' on stocks at this stage is more related to US markets which are still, as measured by most indicators, bordering on extreme valuations.
Source: Shiller PE
Policy settings are expected to remain stimulatory in Australia.
Enjoy the full report from Westpac's Bill Evans here.
