FX.co ★ Australia Consumer Sentiment Edges Higher

Australia's Westpac-Melbourne Institute Consumer Sentiment Index experienced a modest increase of 0.6% in July 2025, reaching a four-month high of 93.1, slightly surpassing June's 0.5% growth. Despite this upswing, there remains a sense of disappointment, following the central bank's unexpected decision to maintain interest rates during its July meeting. Within the sub-indexes, there was a notable 5.0% rise in 'family finances compared to a year ago,' achieving a level of 79.2. Additionally, expectations for family finances over the forthcoming year increased by 2.6%, reaching 101.4. Sentiment regarding economic conditions over the next year improved by 1.8% to 94.1; however, the five-year outlook declined by 2.8% to 93.4. Meanwhile, the index tracking the 'time to buy a major household item' dropped by 2.6% to 97.6. Unemployment expectations saw a 1.0% rise, reaching 128.7, though still slightly under the long-term average of 129. Mathew Hassan, Head of Australian Macro-Forecasting, observed that the consumer perspective remains entrenched in a state of 'cautious pessimism' overall.