Australia’s Consumer Sentiment Hits 3-Year High

Australia's Westpac-Melbourne Institute Consumer Sentiment Index rose 4% in March, reaching 95.9 from 92.2 in February—its highest level in three years.

The increase was driven by the Reserve Bank of Australia's interest rate cut in February and easing cost-of-living pressures.

The index is now just 4% below the neutral level of 100, where optimists and pessimists are evenly balanced.

Survey results showed broad-based improvement, with a notable rise in confidence regarding the labor market outlook.

Among key topics, ‘inflation’ remained the most recalled issue, followed by ‘budget and taxation,’ ‘employment,’ ‘economic conditions,’ and ‘interest rates.’ Despite the overall improvement, some concerns persist, particularly regarding international developments.

While not the most pressing issue, the ongoing US tariff disputes and strained relations with its allies continue to cause unease.