Australia Consumer Sentiment Rebounds to 83.9, Pessimism Remains
Australian consumer sentiment rose 4.1% in July to 83.9, but remains among the weakest 10% of readings in 50 years. Focus shifts to June CPI due July 29 for RBA rate path.
Alpha Score of 37 reflects weak overall profile with moderate momentum, poor value, weak quality. Based on 3 of 4 signals — score is capped at 90 until remaining data ingests.
Australian consumer sentiment improved in July, with the Westpac–Melbourne Institute Consumer Sentiment Index rising 4.1% to 83.9. The index still ranks among the weakest 10% of readings in the survey's 50-year history, Westpac said.
The survey pointed to easing fears rather than renewed optimism. Expectations for the economy over the next 12 months and five years improved only marginally and remain well below long-run averages. Consumers were more positive about the labor market: the Unemployment Expectations Index fell 7.1% to 129.9, returning close to its historical norm. Uncertainty over the interest-rate outlook also stayed elevated, with 17% of respondents saying they “don’t know” where rates are headed – the highest proportion since March 2022.
Attention now shifts to the June quarter CPI report due July 29. Westpac said the improvement in confidence partly reflects relief that worst-case scenarios for energy prices, interest rates and employment have not materialized. The bank expects inflation to remain uncomfortably high, supporting another 25 basis point rate increase at the RBA’s August meeting. Recent communication from senior RBA officials has emphasized that inflation persistence remains the Board’s primary concern, suggesting stronger sentiment alone is unlikely to alter the central bank’s readiness to tighten policy again if price pressures fail to ease.
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