Mortgage holders' confidence hits 32-year low

Confidence crashes to 32-year low

Westpac's consumer sentiment index sank to a four-year low in November. Confidence among mortgaged households reached its lowest level since 1994, signalling deepening pessimism about the economy.

Households feel helpless about economy

Matthew Hassan, Westpac's head of economic forecasting, said the mood matched 2022 when inflation ran close to eight percent.

Comparison to pandemic lockdown mood

Confidence in the economic outlook over the coming year reached its weakest since August 2020, matching the low point during the pandemic.

“There is a similar feeling of helplessness now.”

Indebted households most pessimistic

Indebted households showed the worst pessimism in records stretching back to 1994. The survey revealed that households with mortgages were gloomier still than the general population about economic prospects.

Year ahead will feel like recession

Reserve Bank governor Michele Bullock warned that the year ahead would feel like a recession thanks to persistent cost-of-living pressures alongside weak economic growth.

“feel like it's a recession”

Markets signal rate cuts ahead

Financial markets have begun factoring in lower interest rates from mid-2027. The implied probability of a Reserve Bank rate cut was more than fifty percent by August 2027, with a decrease to four point six…

Chalmers faces pressure on spending

Treasurer Jim Chalmers faces mounting pressure to contain inflation and cost-of-living rises. The government will include cuts to spending in next month's mid-year budget update as pressure mounts to rein in inflation.