Australia’s Westpac-Melbourne Institute Consumer Sentiment Index rose 0.6% month-over-month to a four-month peak of 93.1 in July 2025, slightly faster than a 0.5% gain in the prior month. While the mood improved a bit, the latest result highlighted clear disappointment following the central bank’s surprise move to leave rates on hold at its July meeting. Among the sub-indexes, 'family finances compared to a year ago' surged 5.0% to 79.2, and expectations for family finances over the next 12 months rose 2.6% to 101.4. Sentiment toward economic conditions over the next 12 months went up 1.8% to 94.1, but the five-year outlook fell 2.8% to 93.4. Also, the 'time to buy a major household item' index dipped 2.6% to 97.6. Unemployment expectations increased 1.0% to 128.7 but remained slightly below the long-run average of 129. Mathew Hassan, Head of Australian Macro-Forecasting, noted that the consumer mood was stuck at ‘cautiously pessimistic’ levels overall.