Australian consumer sentiment has turned positive for the first time since early 2022, signalling renewed confidence among households and businesses as the economy steadies.
The Westpac–Melbourne Institute Consumer Sentiment Index jumped 12.8% to 103.8 in November, up from 92.1 in October.
“This is an extraordinary and somewhat surprising result,” said Matthew Hassan, Westpac head of Australian macro-forecasting. “November marks the first ‘net positive’ read on consumer sentiment in the best part of four years.”
The result marks a turning point after years of subdued confidence, with improved household finances and a stronger economic outlook offsetting earlier concerns about inflation and interest rates.
Much of the surge came from a more upbeat view of the economy.
The "economic outlook, next 12 months" sub-index jumped 16.6%, while the five-year outlook rose 15.3%, both above long-run averages.
Hassan said the lift reflected “clearer signs that a recovery is gaining momentum, especially around consumer demand and housing markets.”
Improving global conditions – including easing US–China trade tensions and a new US–Australia deal on critical minerals – also helped sentiment.
Consumers’ rate outlook improved after the Reserve Bank’s November decision.
The Mortgage Rate Expectations Index climbed 17.1% to 119.1, its highest level in 14 months.
“Those surveyed after the RBA decision were more confident and less hawkish on the interest-rate outlook,” Hassan said. “The RBA decision, it seems, was less unsettling than feared. The governor also revealed that the RBA had not considered raising the cash rate at the November meeting.”
The "family finances, next 12 months" sub-index rose 12.3% to 109.1, while the ‘time to buy a major item’ measure jumped 14.9% to 111.6, a four-year high.
“Expectations can change quickly, especially if consumers are not seeing actual improvements in their finances,” Westpac cautioned, though the latest lift suggests a stronger Christmas trading period.
Survey data showed 35% of consumers plan to spend less on gifts, but 15% plan to spend more — the least restrained outlook since 2016 outside the post-COVID rebound.
The "time to buy a dwelling" index was steady at 96.4, but optimism remains concentrated among younger buyers.
Those aged 18–34 recorded a positive 115 reading, compared to 87 for 35–50-year-olds and 84 for over-50s.
Hassan said the expanded First Home Buyer Guarantee, which allows purchases with a 5% deposit and no LMI, “appears to be driving the big lift in buyer sentiment among younger cohorts.”
Consumers also remain bullish on property prices.
The House Price Expectations Index rose 0.3% to 172.4, a new cycle high, with more than 80% of respondents expecting prices to rise over the next year.
For mortgage brokers, November’s data point to renewed confidence across both households and businesses.
A stronger economic outlook, easing inflation pressures and steady rates could support renewed borrowing and investment activity heading into 2026, especially from first-home buyers and small-business clients regaining optimism.
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