July’s Westpac-Melbourne Institute index hits 83.9, rebounding from June’s decline but remains near historic lows amid mortgage rate concerns.
Australian consumer sentiment increased 4.1% in July to 83.9, recovering from a 2.9% drop in June, according to the Westpac-Melbourne Institute index. The reading remains in the bottom 10% of results over the survey’s 50-year history, reflecting persistent economic pessimism.
The survey, conducted from July 6-9, closed before the latest spike in global oil prices, which could further strain household budgets. A 13.4% jump in future family finances expectations was driven by temporary petrol price relief, rather than broader economic optimism.
Despite the rebound, 60% of respondents still expect further mortgage rate hikes, underscoring lingering concerns about the Reserve Bank of Australia’s tightening cycle, which has raised rates to 4.35% this year.