Australian Consumer Confidence Falls 3.1% Amid Economic Concerns

Australian consumer confidence declined by 3.1% in September, reflecting ongoing economic concerns despite improvements in household finances and inflation easing. The Westpac-Melbourne Institute index fell to 95.4, indicating that pessimists still outnumber optimists, with consumers particularly wary of the economic outlook for the next one and five years. Shoppers remain hesitant to make big purchases, such as major household goods, which continues to challenge retail recovery despite some recent gains in spending. This prolonged pessimism marks the second-longest stretch of consumer caution in Australia since 1974. Similarly, in the U.S., consumer sentiment also weakened amid inflation and economic anxiety, with many consumers planning to tighten spending, especially on discretionary items, while starting holiday shopping earlier to avoid price markups. Both countries exhibit cautious consumer behavior influenced by price sensitivity and uncertain economic prospects, which may restrain broader economic growth and retail sales in the near term.