Australia consumer confidence slips in June as finances squeezed

June 9, 2026 - 01:35

SYDNEY -- A closely watched gauge of Australian consumer sentiment slipped in June, as rising interest rates and higher fuel costs continued to strain household budgets, a survey showed on Tuesday.

The monthly index fell by 1.8 points from the previous month, landing at 83.6. A reading below 100 still indicates that pessimists outnumber optimists among consumers. The decline marks a reversal from a modest improvement seen in May, suggesting that the financial pressure on Australian families is not letting up.

Economists noted that the drop was driven largely by worsening perceptions of personal finances. The sub-index tracking family finances compared to a year ago fell sharply, while the outlook for the next 12 months also weakened. Consumers are feeling the weight of higher mortgage repayments following a series of interest rate hikes by the Reserve Bank of Australia, alongside elevated costs for essentials like petrol and groceries.

The survey also showed a dip in the measure for whether now is a good time to buy major household items. This points to a cautious approach to spending, which could weigh on broader economic activity in the months ahead. With inflation still running above the central bank's target range, many households are bracing for further financial strain before any relief arrives.