Consumers are optimistic about their future finances, but they're still worried about the contraction of the economy reported last month, Westpac says.
The Westpac-Melbourne Institute Index of Consumer Sentiment rose by just 0.1 per cent to 97.4 points in January, from 97.3 points in December, remaining below the 100 point level at which optimists outnumber pessimists.
Westpac senior economist Elliot Clarke said the result suggested a reported 0.5 per cent fall in September quarter GDP, reported last month, was still lingering on the minds of consumers.
"The absence of a rebound in January is a disappointing result, particularly when one factors in the cumulative 10% gain for Australian equities over the past two months and, to a lesser extent, a nascent improvement in the pace of job creation," he said in a note.
Mr Clarke said survey respondents' feelings about their the wider economy have fallen this month.
Households' views of their economic conditions over the next 12 months partially rebounded, jumping 2.5 per cent after falling 5.2 per cent in December.
Their views of economic conditions over the next five years fell 1.4 per cent in January after a 2.6 per cent fall in December.
Meanwhile, consumers' views of their personal finances are mixed this month.
Their views of their finances compared to one year ago plummeted 7.2 per cent in January, after a two per cent fall last month.
However, consumers' were 0.3 per cent more optimistic about their finances over the next 12 months.
The time to buy a major household item index also rebounded 4.9 per cent, after a seven per cent fall last month, even though the time to buy a dwelling index fell two per cent in January.
Finally, the unemployment expectation index edged down 0.8 per cent in January, with a decline in the index indicating consumers are more optimistic about the jobs market.
