Australia Consumer Sentiment Hits 6-Month Low

Australia’s Westpac-Melbourne Institute Consumer Sentiment Index fell 3.5% mom to 92.1 in October 2025, steeper than a 3.1% decline in the previous month. It marked the fastest drop since April, erasing gains made between May and August. Views on family finances weakened, with the conditions from a year ago falling 4.8% to 82.1, while expectations for the next 12 months tumbled 9.9% to 97.1, the lowest level in over a year. Assessments of the broader economy were mixed: the 12-month outlook slipped 2.5% to a one-year low of 89.9, but the five-year outlook improved 1.4% to 94.0. The “time to buy a major household item” index slipped 1.1% to 97.2, while unemployment expectations were 2.9% lower to 127.6, below the long-run average of 129. Mathew Hassan, Head of Australian Macro-Forecasting, noted that households appear to have been unsettled by recent inflation updates. He added that while a cash rate cut in November is “far from assured,” it is also “not off the table.”