Australia Consumer Mood Recovers from 2-1/2-Year Low

Australia’s Westpac–Melbourne Institute Consumer Sentiment Index fell 2.7% month-on-month to 78.2 in November 2026, its lowest level since November 2022. The decline extended a 4.7% drop in the prior month, marking a third straight monthly fall, amid persistent cost-of-living pressures and higher borrowing costs, which continued to weigh on mortgage affordability. Economic sentiment weakened, with the one-year outlook dropping 10.2% to 70.3 and the five-year outlook easing 1.0% to 84.6. Views on household finances were mixed: assessments of finances over the past year rose 3.0% to 68.8, while expectations for the next 12 months slipped 1.0% to 87.6. The index measuring whether it was a good time to buy major household items fell 3.7% to 80.0, while unemployment expectations rose 1.6% to 144.4. Westpac economist Matthew Hassan said he does not expect a rate hike in February, following five increases this year, though persistently high inflation will continue to test the RBA’s resolve.

Australia’s Westpac–Melbourne Institute Consumer Sentiment Index fell 4.7% mom to a six-month low of 80.4 in October 2026, slowing from a 5.2% decline in the prior month while marking a second straight month of decline. Confidence remained under pressure from higher fuel and interest rates, as views on household finances weakened, with assessments of finances over the past year falling 8.0% to 66.9, while expectations for the next 12 months declined 6.4% to 88.4. Economic sentiment was also subdued, with the one-year outlook slipping 1.6% to 78.3 and the five-year outlook edging down 0.4% to 85.5. The index measuring whether it was a good time to buy major household items fell 7.1% to 83.0, while unemployment expectations rose 1.9% to 142.1. Westpac economist Matthew Hassan said previously flagged upside risks to inflation were materialising, while the RBA was also wary of demand pressures from the AI and data-centre boom. He expects another rate hike at the RBA’s November meeting.

Australia’s Westpac–Melbourne Institute Consumer Sentiment Index plunged 5.2% mom to 84.4 in September 2026, reversing a 6.0% rise the prior month and marking its first decline since June, as higher fuel prices and concerns over further rate hikes weighed on confidence. Views of household finances weakened sharply, with assessments of finances over the past year tumbling 9.2% to 72.6, while expectations for the next 12 months slipped 3.8% to 94.5. Economic sentiment deteriorated, with the one-year outlook down 4.0% to 79.5 and the five-year measure declining 4.5% to 85.8. The gauge of whether it was a good time to buy major household items dropped 4.8% to 89.3, while unemployment expectations rose 2.8% to 139.4. Westpac economist Matthew Hassan said the strong July CPI reading increases the likelihood of a future rate hike, but the RBA is unlikely to act on a single monthly inflation reading given the series’ volatility, with the next CPI update due a day after the policy meeting.