Australian consumer confidence jumped to a six-month highs in November as a cut in interest rates lifted optimism about the economic outlook in Australia.

The survey of 1,200 people by Westpac Bank and the Melbourne Institute showed its index of consumer sentiment rose 6.3 percent to 103.4.  The previous month saw a rise of 0.4%.  This was the third month of gains.

Compared to last year the overall index is down 6.7%.  Today, however see optimists outnumber pessimists for the first time since June of 2011.

The Reserve Bank of Australia (RBA) cut its main cash rate by 25 basis points to 4.5 percent last week, the first easing in over two years. Any move in rates usually has a big impact on sentiment in Australia, where 95% of all home loans are on variable rates.

Confidence

Those that have a mortgage: rises by 13.9 % in the month

Home owners mortgage free: rises by 6%

Tenants:  falls by 6.8%

Data also showed that people have a concern about the rising living and utility costs in the next 12 months.

Data measuring whether it was a good time to buy?

Major Household Items:  rises by 1.8%

A House:  rises by 6.5%

A vehicle: falls by 3%

Overall, the survey's expectations index rose 8.1 percent to 100.9, while its index of current conditions increased by 3.9 percent to 107.0.