Consumers feeling merry in time for a Christmas splurge

Australian households are optimistic about their economic prospects for the first time since the start of an inflation spike almost four years ago.

The Westpac-Melbourne Institute Consumer Sentiment Index climbed above 100, meaning optimists outnumbered pessimists, marking a watershed moment for Australia's economy since sentiment soured in early 2022.

It was an extraordinary and somewhat surprising result, Westpac head of Australian macro-forecasting Matthew Hassan said.

"Sentiment overall is still only marginally positive rather than strongly optimistic," he said on Tuesday.

"However, the move draws a clearer line under what had been an extended period of consumer pessimism when disposable incomes were being hit hard by a combination of high inflation, high interest rates and rising