The latest Westpac-Melbourne Institute consumer sentiment reading rose to 91.6 in March, up +1.2% from the month as consumers remain firmly pessimistic.

The subindices show improvement in sentiment relating to current conditions and medium-term expectations for the economy. However, consumers still expect a softening economy to be a headwind this year. Consumer were less confident about the labour market outlook and housing. The majority of respondents also expect mortgage rates to rise over the next 12 months.