Aussie households pessimistic amid worsening interest rate outlook

Tuesday 16 December 2025

The monthly Westpac consumer sentiment index has been released, which has snapped back into pessimistic territory after last month’s aberration, falling 9% over the month to be sitting below levels seen in August and September.

Consumers are increasingly worried about interest rates, inflation, and family finances, though labour market expectations remain stable.

The main index fell from 103.8 in November to 94.5 in December, marking a return to “cautiously pessimistic” territory after last month’s bounce.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.