Thank you Michael Chua of the Melbourne Institute.
WHAT THE NUMBERS ON THE LEFT HAND SIDE MEAN
Each month the Melbourne Institute asks five questions:
. Family finances vs a year ago: better or worse?
. Family finances next 12 months: better or worse?
. Economic conditions next 12 months: better or worse?
. Economic conditions next 5 years: better or worse?
. Good or bad time to buy major household items?
For each question it subtracts the per cent who say worse/bad from the percentage who say better/good. It then adds 100.
The result gives an index number which is greater than 100 if there are more optimists than pessimists, less than 100 if there are more pessimists than optimists.
The overall index is an average of the five index numbers.
This means the more pessimistic the responses, the lower the index number.
Any result above 100 means optimists outweigh pessimists.
. Confidence is how low?
. We're confident. Not.
. We don't know how the carbon tax will work, so we're scared
. First floods, now carbon tax. Confidence on the floor