Stimulus scheme helping people 'get over the hump'

The government's fiscal stimulus programme has helped boosted consumer confidence, one chief executive suggests.

Australians are feeling more confident about spending money, it has been suggested.

Pointing to a rise in consumer expenditure over recent months, Ian Johnstone, chief executive of beverage firm Foster's, claims that the trend of cutting back seen earlier this year is beginning to recede.

Speaking in Brisbane, he tells the Australian that there was a time where people "had a hangover from Christmas" and were concentrating on paying off financial commitments and managing credit card debt rather than spending money.

However, as his firm reveals a resurgence in sales, Mr Johnstone notes that the government's Australian banking initiatives aimed at reviving the economy have boosted consumer confidence.

"I think the stimulus packages have helped people get over that hump," he points out.

Such comments come as RateCity chief executive Damian Smith recently stated people are increasingly looking to borrow money and are prepared to spend the cash that they have tucked away into their saver accounts.

Posted by Joe Letts