Australia’s Westpac–Melbourne Institute Consumer Sentiment Index rose 1.2% month-on-month to 91.6 in March 2026, reversing a 2.6% decline in February and marking the first increase since November.
Household finances showed a mixed picture: assessments of current finances versus a year ago rose 1.8% to 80.2, while expectations for finances over the next 12 months edged down 0.1% to 97.6. Views on economic conditions for the coming year weakened, with that subindex falling 2.9% to 85.9, but the five-year economic outlook improved, rising 2.4% to 96.3.
The “time to buy a major household item” index strengthened 4.9% to 98.0, indicating a modest improvement in spending appetite. Meanwhile, unemployment expectations climbed 3.8% to 134.7, suggesting consumers are more concerned about future labour market conditions.
According to Westpac economist Matthew Hassan, domestic conditions have been mixed: economic growth in 2025 exceeded the Reserve Bank of Australia’s forecasts, but the latest survey results point to a cooling in consumer momentum. He added that rising global uncertainty has disrupted energy supplies and darkened the global growth outlook.
Overall, Westpac expects the RBA to leave interest rates unchanged in March, with any potential rate increase now likely to be delayed further.
