Australia Consumer Sentiment Hits 9-Month High

Australia’s Westpac–Melbourne Institute Consumer Sentiment Index jumped 6.0% mom to 88.9 in August 2026, accelerating from a 4.1% rise in the prior month and marking its fastest gain since November 2025. However, the index remained almost 10% below its level a year earlier. Sentiment strengthened as mortgage holders became less concerned about further interest rate increases. Views of household finances brightened, with assessments of the past year surging 12.6% to 80.0, while 12-month expectations rose 1.8% to 98.2. Economic sentiment also improved, with the one-year outlook up 5.8% to 82.8 and the five-year measure rising 3.2% to 89.8. The gauge on whether it was a good time to buy major household items jumped 8.1% to 93.8, while unemployment expectations increased 4.4% to 135.7. Westpac economist Matthew Hassan said the Reserve Bank has scope to hold the cash rate after three hikes this year while assessing the impact of tighter policy and whether underlying inflation has peaked.

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