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.





