SYNKO #12

This latest update includes the August 2025 results of the Westpac-Melbourne Institute Consumer Sentiment Index

The Consumer Sentiment Index reached 98.5 points in August 2025 which was +5.7% over the month and +15.8% over the year. It was the highest index value since March 2022 and sentiment is now just 1.6 index points away from being more optimistic than pessimistic which it hasn’t been in 42 months.

Consumer sentiment is clearly improving as interest rates fall with the latest interest rate cut in August fuelling the improving sentiment.

The improvement in sentiment is seen in other indexes published within this release.

The Unemployment Expectations Index fell 2.4% over the month and is -5.9% over the year (note that a lower index means less fear of the unemployment rate rising).

The Time to Buy a Dwelling Index was recorded at 97.8 points, still slightly more pessimistic than optimistic however, it was a four-year high index value and +10.5% over the month and +37% over the year.

The House Price Expectations Index recorded its second highest result since December 2013 indicating most respondents expect prices to rise. At 164.2 points, the index was +0.9% over the month and +4.1% over the year.