SYDNEY, Jan 17 (Reuters) -A measure of Australian consumer sentiment rose in January for a second month to its highest in four years, adding to recent signs that households were ready to spend more followinga long period of reticence.
A Melbourne Institute and Westpac Bank survey of 1,200 people published on Wednesday said its index of consumer sentiment rose 1.8 percent in January from December when it rose 3.6 percent.
The index was up 7.9 percent on January last year at 105.1, meaning optimists now outnumbered pessimists.
"Sentiment has continued to recover from the weakness seen in the September quarter last year, bolstered by a less threatening outlook for interest rates and improving confidence around the economy and jobs," said Westpac senior economist Matthew Hassan.
He also noted this was the most positive start to a calendar year since 2010.
A revival in sentiment, and spending, is much desired after household consumption grew at its slowest pace since 2008 in the September quarter of last year.
There have been some promising signs with retail sales surging in November as consumers splashed out on iPhones and "Black Friday" shopping deals, while new vehicle sales jumped to a record in December.
Respondents in the January survey were clearly more upbeat on the economy, with the barometer of conditions over the next 12 months up another 2.6 percent after surging in December.
The outlook for the next five years increased by 5.4 percent, and was up 12.4 percent on a year ago.
The survey's measure of family finances compared to a year ago dipped 1.6 percent in January after a jump the month before,while the outlook for the next 12 months rose 1.7 percent.
The index of whether it was a good time to buy a major household item edged up 0.5 percent, but remains below its long run average.
Consumers were feeling more secure in their jobs, with that measure at its best level in over six years.
The 'good time to buy a dwelling' index climbed 6.1 percent to 106.7, the highest reading since September.
(Reporting by Wayne Cole; Editing by Eric Meijer)
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