News & Tips

The Westpact-MI Consumer Sentiment Report was released. Some of the highlights include:

✅ Overall sentiment up 2.2% in May, but still in negative territory
✅Trajectory is positive for June with sentiment notably better in recent weeks compared to early April and Trump’s Tarriff announcements
✅Consumer more confident in future interest rate cuts
✅‘Time to buy a dwelling’ up 5.1%, but still net negative.
✅House price expectations rose with 87% of respondents expecting prices to be the same or higher in 12 months

Chief Economist Matthew Bell comments:

“No big moves in Consumer Sentiment for the May report, but positive for housing, both in terms of movements in the Time to Buy index and House Price expectations.

Historically Consumer Sentiment hasn’t had a strong correlation with property prices, but does point to increasing levels of transaction activity.

Also of note was the increase by consumers in the chance of future interest rate cuts, moving to match markets, which now have a May Cash Rate cut priced in at just under 100%, and a further three 25bps cut by the end of 2025.

We expect further improvements in Consumer Sentiment over coming months as monthly inflation indicators confirm the likelihood of future cuts, any local political uncertainty evaporates with the strong federal election result and some of the global economic uncertainty recedes as the tariffs announced by the US in early April are further wound back.”

Read the full Westpact report.