The Westpac-Melbourne Institute consumer sentiment index rose 2.2% in May to 92.1. While the index is 12% higher YOY, a reading below 100 indicates pessimists still outnumber optimists.

All but one of the five subindices  improved from April to May, but still sit below March readings. Retrospectively, family finances seem to be improving with the ‘family finances vs a year ago’ index rising, while the ‘family finances, next 12 months’ declined.

Westpac said overall sentiment rose on a clear victory of the Labor Government at the 3 May Federal Election. Not surprisingly sentiment among Labor voters jumped 4.5% to a high of 109.6, while confidence among LNP supporters declined 0.7% to 85.5.