Consumer confidence in 2023 is second-worst in 49 years: Westpac

The news: Consumer confidence has rebounded slightly in the last month of the year, but 2023 marks the second-worst result in almost half a century of records, Westpac economists say.

The numbers: The Westpac-Melbourne Institute Consumer Sentiment Index rose 2.7% to 82.1 in December, up from 79.9 in November. Westpac economists found a material lift in consumer confidence after the Reserve Bank held the cash rate steady at its December meeting, but 60% of Australians expect further rate hikes in 2024.

The context: As 2023 draws to a close, many Australians are struggling under the weight of high inflation and interest rates and a larger tax-take from the federal government following the end of the low and middle income tax offset (LMITO) in FY22.

What they said: "While ending on a slightly improved note, 2023 still marks the second worst calendar year for sentiment on records going back to 1974," Westpac senior economist Matthew Hassan said in a statement.