Australia’s Westpac Consumer Sentiment Index fell -3.1% MoM to 95.4 in September 2025, retreating from August’s post-rate cut boost but still up +12.8% YoY, leaving sentiment in “cautiously pessimistic” territory.

• The ‘family finances vs a year ago’ sub-index rose +2.6% MoM to 86.3, the best since Jan 2022 but still below its long-run average.

• The ‘family finances next 12mths’ sub-index edged up +0.9% MoM to 107.7, slightly above its long-run average, indicating improving forward household confidence.

• The ‘economic conditions next 12mths’ sub-index dropped -8.9% MoM to 92.2, while the ‘next 5yrs’ measure fell -5.9% to 92.7, signaling renewed pessimism.

• The ‘time to buy a major household item’ sub-index declined -3.4% MoM to 98.2, slipping back into negative territory despite still being up +18.9% YoY.

• Homebuyer sentiment eased, with the ‘time to buy a dwelling’ index down -1.7% MoM to 96.1; Victoria was strongest (110), while WA (74) and QLD (82) remained weak.

• The Unemployment Expectations Index rose +4.6% MoM to 131.4, back around its long-run average, indicating stable but not improving labor market sentiment.

• House Price Expectations hit a 15-year high, rising +2.6% MoM to 168.4, with over three-quarters of consumers expecting prices to increase in the next year.

• Mortgage Rate Expectations rose +5.2% MoM to 88.0, with 69% of consumers expecting rates to be the same or lower in 12 months.