Australian consumers feel deeper squeeze as sentiment hits near-historic lows
A new Westpac and Melbourne Institute survey shows Australian consumer confidence has fallen to one of the most pessimistic levels since the early 1970s, driven by higher fuel prices and the latest RBA rate rise.
The latest monthly consumer sentiment survey from Westpac and the Melbourne Institute, conducted between September 28 and October 1, placed Australian household outlook among the 40 most pessimistic results since the early 1970s. Out of 106 measured aspects, pessimistic responses dominated in 102 categories, with a 20% gap in nearly two-thirds of them. The sharpest deterioration coincided with the Reserve Bank of Australia's decision to raise interest rates to a 15-year peak, and respondents highlighted persistent high fuel prices as a key pressure point.
Family-finance scores fell back to April’s lows, especially among women, retirees and owners of investment properties, while men and those earning under $60,000 showed a slightly brighter view. Expectations for housing purchases and price trends edged up modestly, but overall sentiment remains fragile, with heightened anxiety over possible further rate hikes and growing job-loss fears in fuel-sensitive industries.
Why it matters
The survey signals worsening consumer confidence, which could dampen spending and slow Australia's economic recovery.
How the sides frame it
MODERATE AGREEMENTBoth camps report that consumer confidence has fallen to near-historic lows after rate hikes and high fuel prices, but left-leaning coverage stresses overall household-finance worries and a strong job-vacancy backdrop, while right-leaning coverage stresses the breadth of pessimism across most survey categories and highlights the groups hit hardest.
LEFT
Frames the story as a historic dip in confidence driven by mortgage and fuel cost worries, while noting resilient job vacancies.
RIGHT
Frames the story as a deepening squeeze affecting almost all aspects of household outlook, emphasizing historic pessimism and the hardest-hit demographics.
The left emphasises
- consumer sentiment at its weakest since the late 1990s
- heightened worries over mortgage costs and fuel price increases
- job vacancy data showing a two-year high
The right emphasises
- sentiment among the 40 most pessimistic results since the early 1970s
- pessimistic responses in 102 of 106 measured aspects
- women, retirees and owners of investment properties hit hardest
Possibly left out
- Right-leaning coverage reports a gender-based breakdown of pessimism, absent from left-leaning coverage
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