Crashing consumer sentiment screams “recession”

Tuesday 10 November 2026

The Westpac-Melbourne Institute Consumer Sentiment Index has been released and reveals that sentiment has crashed to a four-year low:

The November fall was driven by a sharp deterioration in the near-term economic outlook. Over 70% of consumers expect mortgage rates to rise further over the next year, and expectations for house prices also took a big hit.

Consumers also expect unemployment to rise gradually, and they have also curtailed their Christmas spending plans.

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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.