Australian consumer confidence rises July near 50-year low

Australian consumer confidence improved slightly in July but remains entrenched near its lowest levels in five decades, as households continue to grapple with intense financial pressures and an uncertain economic outlook. The Westpac-Melbourne Institute Consumer Sentiment Index rose 4.1 points to 83.9 in July, recovering some of June's decline, but the reading is still well below the neutral 100 mark, indicating pessimists significantly outnumber optimists.

The modest improvement was largely attributed to temporary relief from falling fuel prices and a pause in interest rate hikes by the Reserve Bank of Australia. Westpac's head of Australian macro-forecasting, Matthew Hassan, said the gain appeared to reflect relief that worst-case scenarios for energy costs, borrowing rates, and employment had not materialized. Lower national average petrol prices during the survey period, which ran from July 6 to July 9, helped boost the sub-index measuring expectations for family finances over the next year by 13.4 percent.

However, this relief is already under threat. Global oil prices surged shortly after the survey closed, driven by renewed hostilities in the Middle East, including U.S....