Australia Consumer Sentiment Jumps But Remains Near Historic Lows

2026-07-14 01:06 By Farida Husna 1 min. read

Australia’s Westpac–Melbourne Institute Consumer Sentiment Index climbed 4.1% to 83.9 in July 2026, reversing June’s 2.9% fall as worries over energy costs, rising rates, and labor market weakness eased.

Yet confidence remains historically fragile, still lodged in the bottom decile of the survey’s 50-year record and vulnerable to global shocks, particularly Middle East tensions.

Households showed brighter views of their finances, with assessments of the past year up 5.6% to 71.1 and 12-month expectations surging 13.4% to 96.5.

Economic sentiment improved, with the one-year outlook up 0.6% to 78.3 and the five-year measure rising 0.7% to 87.1.

The gauge on whether it is a good time to buy major household items edged up 0.5% to 86.8, and unemployment expectations fell 7.1% to 129.9.

Westpac economist Matthew Hassan cautioned that inflation remains the Reserve Bank’s central concern, with the June-quarter CPI likely decisive ahead of the August meeting, where he expects another 25bp hike.



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Australia Consumer Sentiment Jumps But Remains Near Historic Lows
Australia’s Westpac–Melbourne Institute Consumer Sentiment Index climbed 4.1% to 83.9 in July 2026, reversing June’s 2.9% fall as worries over energy costs, rising rates, and labor market weakness eased. Yet confidence remains historically fragile, still lodged in the bottom decile of the survey’s 50-year record and vulnerable to global shocks, particularly Middle East tensions. Households showed brighter views of their finances, with assessments of the past year up 5.6% to 71.1 and 12-month expectations surging 13.4% to 96.5. Economic sentiment improved, with the one-year outlook up 0.6% to 78.3 and the five-year measure rising 0.7% to 87.1. The gauge on whether it is a good time to buy major household items edged up 0.5% to 86.8, and unemployment expectations fell 7.1% to 129.9. Westpac economist Matthew Hassan cautioned that inflation remains the Reserve Bank’s central concern, with the June-quarter CPI likely decisive ahead of the August meeting, where he expects another 25bp hike.
2026-07-14
Australian Consumer Sentiment Falls
Australia’s Westpac–Melbourne Institute Consumer Sentiment Index dropped 2.9% month-over-month to 80.6 in June 2026, reversing May’s gain and marking its fourth decline this year. Cost-of-living pressures remained the dominant drag, with the temporary halving of the fuel excise tax offering only fleeting relief. Household finances weakened sharply: assessments versus a year ago dropped 7.5% to 67.3, while 12-month expectations slid 8.5% to 85.1. Views on the broader economy were mixed, with the one-year outlook up 4.9% to 77.8 but the five-year measure down 3.2% to 86.5, a three-year low. The “time to buy a major item” index rose 0.9% to 86.4, and unemployment expectations edged down 0.1% to 139.8. Westpac economist Matthew Hassan said the impact of three rate hikes this year is increasingly evident, but inflation remains the immediate concern, with energy costs yet to fully feed through. While a pause is possible at the next meeting, Westpac expects further tightening in the year.
2026-06-09
Australia Consumer Mood Recovers from 2-1/2-Year Low
Australia’s Westpac–Melbourne Institute Consumer Sentiment Index rose 3.5% in May to 83.0, rebounding from April’s 2-1/2-year low of 80.1. The rebound was supported by the government’s temporary halving of the fuel excise tax, cushioning households from the central bank’s third 25bp hike this year in early May. Household finances showed improvement, with assessments versus a year earlier up 9.0% to 72.8 and 12-month expectations climbing 10.7% to 93.0. The “time to buy a major item” measure gained 2.8% to 85.6, while job-loss fears eased 5.2% to 140.0. Sentiment toward the broader economy weakened, however, with the one-year outlook down 1.5% to 74.2 and the five-year view slipping 2.2% to 89.3, the weakest combined reading since November 2022. Westpac economist Matthew Hassan said the budget’s impact was mixed, warning that inflation risks, particularly from rising energy costs feeding into other prices, could keep pressure on the Reserve Bank to tighten further.
2026-05-19