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Australian Consumer Confidence Slips Again as Rate Fears Build

Households now expect higher borrowing costs, sharpening RBA policy trade-offs ahead of its early‑February meeting.

Overview

  • The Westpac–Melbourne Institute index fell 1.7% to 92.9 in January, extending December’s sharp drop and remaining below the neutral 100 level.
  • Nearly two-thirds of consumers now expect mortgage rates to rise over the next year, more than double the share reported in September.
  • Near-term views deteriorated most, with the family finances next‑year sub-index down 4.5% and the 12‑month economic outlook down 6.5%.
  • Job confidence softened, signaling cooling labour‑market optimism after a period of resilience.
  • Housing sentiment proved comparatively steady, with younger buyers still positive even as house‑price expectations eased slightly.