16-Dec-2025 09:31

Australia's consumer confidence weakened sharply in December, with the Westpac'Melbourne Institute Consumer Sentiment Index falling 9.0% month-on-month to 94.5, slipping back below the optimism threshold after a brief improvement in November. The decline was driven by renewed inflation worries and uncertainty over the interest-rate outlook, which weighed on economic expectations, household finances, and spending intentions. Australia's consumer sentiment weakened sharply in December, with the Westpac'Melbourne Institute Consumer Sentiment Index plunging 9.0% month-on-month to 94.5, slipping back below the 100 optimism mark after briefly turning positive in November. Inflation concerns weighed heavily, with the one-year economic outlook falling 9.7% to 94.6 and the five-year view dropping 11.7% to 95.7. Household sentiment also deteriorated, as views on finances compared with a year ago declined 5.0% to 80.9. However, perceptions of unemployment improved, with the index falling 9.1% to 126.8. Westpac noted that persistent inflation pressures are reviving concerns that interest rates may stay higher for longer.

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