Mortgage holders’ confidence crashes to lowest level since 1994 as year that ‘feels like a recession’ looms
Summary
Australian household confidence fell in November, with Westpac’s survey finding that pessimism among households with mortgages was at its worst since records began in 1994. The survey came amid cost-of-living pressure and expectations of further rate rises, although financial markets increasingly expect the Reserve Bank of Australia to cut rates from around August next year.Key Facts
- Westpac’s consumer sentiment index fell to a four-year low in November.
- Confidence in the economic outlook for the next year was at its weakest since August 2020.
- Pessimism among indebted households reached its worst level in records dating back to 1994.
- Nearly three in four survey respondents expected another interest-rate increase within 12 months.
- Markets priced in a greater than 50% chance of an RBA rate cut by August next year, according to ANZ data.
- Brent crude fell about 20% from a late-October high near US$118 a barrel to below US$94.
- Prime Minister Anthony Albanese said he was working closely with Treasurer Jim Chalmers ahead of a mid-year budget update that will include spending cuts.
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