Australia’s Westpac–Melbourne Institute Consumer Sentiment Index fell 2.7% month-on-month to 78.2 in November 2026, its lowest reading since November 2022. The drop followed a 4.7% decline in the previous month and marked the third consecutive monthly fall, reflecting ongoing cost-of-living pressures and elevated borrowing costs.
Economic sentiment weakened further: the one-year economic outlook index slumped 10.2% to 70.3, while the five-year outlook edged down 1.0% to 84.6.
Views on household finances were mixed. The assessment of finances compared with a year ago improved 3.0% to 68.8, but expectations for household finances over the coming 12 months slipped 1.0% to 87.6.
The index tracking whether it is a good time to buy major household items fell 3.7% to 80.0, indicating greater reluctance to commit to big-ticket purchases, while the unemployment expectations index rose 1.6% to 144.4, signaling increased concern about future job prospects.
Westpac economist Matthew Hassan said he does not anticipate a rate hike in February, following five increases earlier in the year, though he noted that persistently high inflation will continue to test the Reserve Bank of Australia’s resolve.
