Consumers relax as petrol price falls

SYDNEY - Australian consumers are feeling more confident as petrol prices retreat further from recent highs and fears of further interest rate rises abate.

An index of consumer sentiment, produced by Westpac Banking Corp and the Melbourne Institute, lifted by 3.9 per cent to 105.2 points in October from 101.2 in September.

Westpac chief economist Bill Evans said there were two reasons behind the rise in sentiment.

"First, petrol prices have fallen by 8 per cent since the last survey.

"Second, consumers are becoming used to the somewhat higher but still broadly neutral level of interest rates," he said.

- NZPA