Festive drear: consumer mood sinks ahead of the silly season

Marina Karpathios
04:45pm November 10 2026

New Westpac data shows six in ten Aussies are planning to maintain or increase their gift spending, despite confidence sitting at levels rarely seen outside periods of major economic disruption. (Image: Unsplash) 

It might be the season to be jolly, but Australians are finding festive cheer a little harder to come by this year. 

Consumer confidence fell again in November, with the latest Westpac-Melbourne Institute Consumer Sentiment Index down 2.7 per cent to 78.2 - its lowest level in four years as Australians grapple with higher living costs and interest rates. 

And yet despite feeling gloomy, most Aussies are still planning to spend about the same on presents as they did last year. 

Around 38 per cent expect to spend less on gifts, while 46 per cent plan to spend about the same and 14 per cent expect to spend more. 

That means around six in ten are planning to maintain or increase their gift spending, even though confidence is at levels rarely seen outside periods of major economic disruption. 

Spending isn't the same thing as sentiment  

It may seem odd to still plan for a typical holiday season while feeling down about finances.  

But spending isn't the same thing as sentiment, and the two measures capture different things.  

Consumer sentiment captures how people feel about their family finances, the economy and whether it is a good time to make a major purchase. Conversely, holiday spending intentions ask people how much they plan to spend on gifts compared with last year.  

People can feel worried about money and still prioritise spending on what matters to them, such as family, friends and traditions, potentially cutting back elsewhere or simply keeping their gift budget steady rather than increasing it. 

The 38 per cent planning to spend less on gifts is only slightly higher than the 20-year average of 34 per cent.  

But this resilience has its limits. For more than 3 million Aussies with a mortgage, the data paints a bleaker picture. 

Mortgage holders feel the pinch 

Confidence among mortgage holders fell 11.6 per cent in November to 68.1, the lowest level recorded for this group since Westpac's measures began in 1994. 

Their festive season plans also look more restrained, with 92 per cent of mortgage holders planning to spend the same or less on gifts than last year.  

Many are also preparing for the possibility of further pressure on their home loans. Among those surveyed after last week's RBA decision, 72 per cent expect mortgage rates to rise further over the next 12 months.  

How are Australians feeling about next year? 

The gloom also extends beyond the festive season. 

Australians' expectations for the economy over the next 12 months fell sharply in November, to their lowest level since August 2020, when Melbourne had entered its second COVID lockdown and unemployment was rising.  

Concerns about jobs have also been gradually rising, although Westpac senior economist Matthew Hassan said the figures were more consistent with consumers being “on edge” rather than suddenly alarmed about jobs. 

House prices are another area where confidence has shifted. Australians are now almost evenly divided about where prices go next, with just over 38 per cent expecting prices to fall and 38 per cent expecting them to rise.  

A version of this story first appeared on Westpac IQ.   

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