The Westpac-Melbourne Institute Consumer Sentiment Index dipped 9% to 94.5 in December, after rising to 103.8 in November. The index has zig-zagged over the past few months but will conclude 2025 in cautiously pessimistic territory—an improvement from the prolonged, deep pessimism defining the majority of 2024.

Expectations for the economy deteriorated in December with indices concerning the economic outlook for the next 12 months and the next five years declining. Other indices were mixed; more people expect interest rate rises in the coming 12 months than those who do not expect rises while less people expect unemployment to rise in the next year.