FX.co ★ Australia Consumer Sentiment Drops to 6-Month Low

In April 2025, the Westpac-Melbourne Institute Consumer Sentiment Index in Australia experienced a significant decline of 6.0% month-on-month, reaching a six-month low of 90.1. This downturn reverses the 0.4% increase observed in the previous month and marks the first decrease since January. Specifically, the ‘family finances compared to a year ago’ index plummeted by 8.5% to 70.2, while expectations for family finances over the next 12 months dropped by 6.2% to 101.6. Concurrently, consumer confidence in economic conditions for the forthcoming 12 months decreased by 5.7% to 90.5, and their perspective for the next five years declined by 3.0% to 98.4. Furthermore, the index for 'time to buy a major item' fell by 7.3% to 90.0. Meanwhile, unemployment expectations increased by 5.1% to 122.9, remaining below its long-term average of 129. These outcomes underscore a growing unease concerning global developments, notably the reciprocal tariffs announced by US President Trump. According to Mathew Hassan, head of Australian Macro-Forecasting, "With the ongoing sell-off in global financial markets, there is a tangible risk of more pronounced declines in consumer sentiment in the coming months."