Key takeaways
- Finder's Economic Positivity Index has increased by 7%.
- 16% of Finder’s panel on average had a positive view of the economy.
The index rose mainly because 35% of experts are now optimistic about the Cost of Living, a significant jump from just 3% last month.
Meanwhile, optimism about wage growth rose from 7% to 10%, while positivity around employment increased from 7% to 12%. Views on housing affordability dropped from 21% to 12%. Optimism about household debt, however, declined from 12% to 7%
Finder's Graham Cooke highlighted that, "The last few months have shown the only significant upward trend in economic sentiment since early 2022, when average positivity peaked at 38% in March 2022. No experts had a positive outlook on household debt or housing affordability, which is understandable amid a high-interest cost of living crisis. Despite potential cash rate cuts in 2024, renters and first-time home buyers should expect more economic challenges."
What is the Finder Economic Positivity Index?
Finder's Economic Positivity Index is a monthly measure of how the economists on Finder's RBA cash rate panel view the outlook for the Australian economy across 5 broad categories. It provides a snapshot of the consensus positive sentiment of economic experts on the Australian economy as a whole over the next 6 months.
The index is collated from over 3,400 responses to Finder's RBA cash rate survey since March 2018. It is produced by analysing data collected across 5 categories:
- Employment
- Wage growth
- Housing affordability
- Cost of living
- Household debt
Each category is measured with a question that asks whether the economist has a positive, neutral or negative outlook over the following 6 months. These responses are then collated into a consensus opinion, then averaged to form the final positivity index.
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