Analysts at TD Securities note that the Westpac consumer confidence index for Australia jumped to its highest level since November 20013, and registered its biggest monthly gain since May 2016.
â€œHome loans were stronger than expected, up 1.1% m/m in May (consensus -2.0% m/m) following a revised drop of 0.9% m/m in April. In terms of the breakdown investment lending remains weak dropping 0.1% m/m while owner-occupier loans rose a robust 0.7% m/m. he data reflects the impact of regulatory measures, tightening lending standards and dampening speculative investment. The data especially investment lending, suggests this is working.â€