Australia Consumer Sentiment Softens

2025-06-10 00:42 By Farida Husna 1 min. read

Australia’s Westpac-Melbourne Institute Consumer Sentiment Index rose 0.5% month-over-month to 92.6 in June 2025, a sharp slowdown from the 2.2% gain in May, amid lingering uncertainty over global trade.

Still, it marked the fourth increase this year, supported by the Reserve Bank’s May rate cut and signs of easing inflation.

Among the sub-indexes, 'family finances compared to a year ago' increased 0.5% to 75.4, while expectations for family finances over the next 12 months fell 1.9% to 98.8.

Sentiment toward economic conditions over the next 12 months declined 0.7% to 92.4, and the five-year outlook dropped 2.4% to 96.2.

Meanwhile, the 'time to buy a major household item' index rose strongly by 7.5% to 100.2.

Unemployment expectations climbed 5.0% to 127.4 but remained slightly below the long-run average of 129.

Mathew Hassan, Head of Australian Macro-Forecasting, noted that the overall mood remains broadly unchanged, with consumers stuck in a holding pattern of “cautious pessimism.”



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