RTTNews - Corrects 2.7% to 3.7% in the headline and second paragraph of the story. This is the corrected version.

Consumer confidence in Australia rose to a near two-year high in August, as reported Wednesday by Westpac Bank and the Melbourne Institute.

The group said its index of consumer sentiment was up 3.7 percent compared to July, reaching its highest level since October 2007.

The index has increased 27.8 percent since May, making it the sharpest three-month gain since the survey's inception in 1975.

The index registered 113.4 points in August, up from 109.4 points in July.

For the full year to August, the index was up a seasonally adjusted 31.6 percent.

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