Australian consumer confidence jumped sharply in November, marking a clear break from years of pessimism. The Westpac Consumer Sentiment Index rose 12.8% mom to 103.8, its first positive reading since early 2022 and the highest in seven years, excluding the brief COVID-era spike. The surge was underpinned by a sharp improvement in views on the economy, with the 12-month and five-year outlook sub-indexes rising 16.6% and 15.3%, respectively—both now well above long-run averages.
Westpac said the result “draws a clearer line” under the prolonged period of consumer strain caused by high inflation, elevated interest rates, and rising tax burdens. The rebound likely reflects stronger domestic momentum, particularly in housing and consumer demand, as well as a more stable external backdrop. The recent de-escalation in U.S.–China trade tensions and a new Australia–U.S. deal on critical minerals have also buoyed sentiment.
The real surprise, according to Westpac, is how decisively these positive forces outweighed lingering worries about inflation and future rate settings. The data suggest households are regaining confidence in Australia’s recovery prospects even as monetary policy remains tight—offering a fresh signal that consumer resilience could help underpin growth heading into 2026.
