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

In October 2025, Australia's Westpac-Melbourne Institute Consumer Sentiment Index experienced a 3.5% month-over-month decline, reaching 92.1. This drop was more pronounced than the 3.1% decrease observed the preceding month, marking the most rapid fall since April and undoing progress seen between May and August. The index reflected weakening perceptions of family finances: assessments of current conditions versus a year ago decreased by 4.8% to 82.1, while expectations for the coming 12 months plummeted by 9.9% to 97.1, the lowest in over a year. Views on the broader economy presented a mixed picture, with the 12-month outlook declining by 2.5% to a one-year low of 89.9, although the five-year outlook improved slightly by 1.4% to 94.0. The index measuring whether it is a good time to purchase major household items dipped by 1.1% to 97.2. Unemployment expectations declined by 2.9% to 127.6, undercutting the long-term average of 129. According to Mathew Hassan, Head of Australian Macro-Forecasting, households seemed to be unsettled by recent inflation updates. He mentioned that while a reduction in the cash rate in November is "by no means certain," it remains a possibility.