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Christmas is coming, and the Australian economy is already looking remarkably more hopeful.  

“Conditions have improved everywhere since troughing in April. However, some industries have seen stronger gains,” NAB chief economist Alan Oster told Australian Financial News .

“Retail has been a strong performer, despite the deterioration in the labour market, likely reflecting the strong income support from the government.”

Consumer confidence (and therefore household spending) is also gaining momentum.

The “time to buy a major household item” sub-index was a key factor in a 10 per cent rise in improved consumer sentiment.

This indicates a successful and optimistic Christmas period, says ANZ head of Australian economics David Plank.

“Lower interest rates and the RBA’s commitment to support employment could have been triggers for the gain,” Mr Plank told AFN Daily.

The Reserve Bank cut the cash rate to a record low of 0.1 per cent last week.

Also increasing confidence for consumers in recent weeks are the reduction in Coronavirus cases (a recovery made possible due to fast progress made nation-wide in controlling the virus), personal income tax cuts and the easing of restrictions.

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