Australia’s Westpac–Melbourne Institute Consumer Sentiment Index fell 4.7% month-on-month to 80.4 in October 2026, a six-month low. This followed a 5.2% decline in September and marked the second consecutive monthly drop. Confidence remained under pressure from higher fuel and interest rates, with views on household finances weakening further. Assessments of finances over the past year fell 8.0% to 66.9, while expectations for the next 12 months declined 6.4% to 88.4.
Economic sentiment was also subdued. The one-year economic outlook slipped 1.6% to 78.3, and the five-year outlook edged down 0.4% to 85.5. The index gauging whether it is a good time to buy major household items dropped 7.1% to 83.0, while unemployment expectations rose 1.9% to 142.1, indicating greater concern about future job losses.
Westpac economist Matthew Hassan noted that upside risks to inflation previously highlighted by the bank were now materialising. He added that the Reserve Bank of Australia (RBA) was also cautious about demand pressures stemming from the AI and data-centre boom. Hassan expects the RBA to deliver another interest rate hike at its November policy meeting.
