Australian consumer confidence has finally moved into positive territory after a long four-year stretch of caution and pessimism.

The latest Westpac–Melbourne Institute Index of Consumer Sentiment jumped 12.8% in November to 103.8, indicating that optimists now outnumber pessimists. This renewed optimism is being supported by three rate cuts earlier in the year, stage 3 tax reductions, and softer inflation readings — although underlying inflation remains at 3% and is not expected to fall to the midpoint of the RBA’s 2–3% target range until 2027.

Economists see this improvement as a reflection of easing financial pressures and a stabilising economic environment. Westpac’s Matthew Hassan described the result as “extraordinary,” highlighting that consumers are not only feeling more confident but also increasingly active in the housing market. Over 80% of those surveyed expect property prices to rise over the next year, particularly in South Australia and Queensland.

Still, some indicators are yet to show similar strength. The ANZ-Roy Morgan survey suggests current conditions remain soft, reflecting that households are still cautious about discretionary spending. For now, the uplift in sentiment is a welcome sign for retailers and the property market, but it may also delay further rate cuts as the RBA weighs the risk of reigniting inflation.