Australia Consumer Sentiment Bounces Back

2026-03-09 23:54 By Farida Husna 1 min. read

Australia’s Westpac–Melbourne Institute Consumer Sentiment Index rose 1.2% mom to 91.6 in March 2026, reversing a 2.6% drop in the prior month and marking the first rise since last November.

Household finances were mixed, with assessments up 1.8% to 80.2 compared with a year earlier, but expectations for the next 12 months edged down 0.1% to 97.6.

Views on economic conditions over the next year fell 2.9% to 85.9, but the five-year outlook gained 2.4% to 96.3.

The “time to buy a major household item” index strengthened 4.9% to 98.0.

Unemployment expectations added 3.8% to 134.7.

Westpac economist Matthew Hassan said domestic developments have been mixed, with 2025 growth exceeding the central bank’s expectations, though the latest survey suggests consumer momentum is cooling.

He also noted rising global uncertainty has disrupted energy supplies and clouded the growth outlook.

On balance, Westpac expects the RBA to hold rates in March, with any potential hike likely pushed further out.



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