Consumer Sentiment Rises - But Remains Close To Recent Lows

The Westpac July consumer sentiment index rose 2.7% to 81.3. This moves us away from recent lows but sentiment has been stuck at fairly depressed levels since the middle part of 2022. Westpac attributes the July rise to lower inflation reads, rather the early July pause by the RBA.

• Westpac Chief Economist Bill Evans noted: "The key message is that sentiment is probably not going to stage a sustained lift from current deeply pessimistic levels until inflation is much lower and interest rates are firmly on hold.”
• Current conditions edged down to 70.5, but expectations rose to 88.5 (+4.5%m/m). The 1yr ahead economic outlook also improved to 81.4, +5.4% m/m.
• Time to buy a major household item also rose, up 3.1% m/m to 78.8, but this is still around historical lows.
• Unemployment expectations were close to steady, but are still 32% higher since the RBA tightening cycle began in May of last year.
• House price expectations firmed, lifting 1.8% 149.3.