Westpac Economics
May 19, 2026
Consumer Sentiment Bulletin
Market ReportMacro Economic IndicatorsReal EstateRates Govt BondsFinancialsReal Estate
The Westpac-MI Consumer Sentiment Index rose 3.5% to 83 in May, recovering slightly as fuel prices eased, but consumers remain deeply pessimistic. Housing-related sentiment hit an 18-month low, and interest rate expectations reached a fresh three-year high.
Key Takeaways
- 1.The Westpac Consumer Sentiment Index rose 3.5% to 83 in May as fuel price shocks eased.
- 2.Homebuyer sentiment has fallen sharply to 18-month lows, dropping 16.1% to an index level of 72.
- 3.A stark generational gap exists in sentiment, with younger 'Generation Z' consumers being outright positive (104) while older cohorts remain deeply pessimistic (below 70).
Table of Contents
- Key points
- Consumer sentiment ticks up from extreme low
- Corporate Directory
- Disclaimer
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Authors
Matthew HassanLuci Ellis
Securities
Westpac-Melbourne Institute Consumer Sentiment IndexWestpac–Melbourne Institute Mortgage Rate Expectations IndexWestpac-Melbourne Institute Index of House Price Expectations
Themes
Cost of Living PressuresMonetary Policy TighteningGenerational Wealth & Sentiment Gap
Regions
Asia PacificAustralia