Dim views on the near-term outlook are negatively affecting the Westpac-Melbourne Institute Consumer Sentiment, which fell 1.7% to 92.9 January.

Concerns about what 2026 has in store for family finances and the wider economy are dragging down the index. Expectations in the near-term for both family finances and the economy deteriorated in January, and a majority of consumers (two-thirds) now expect mortgage rates to move higher in the next 12 months.  All subindices recorded reads below 100 as pessimists outnumber optimists across all components.