Survey Data Points to a Soft Domestic Backdrop

• Australian consumers turned more cautious in June, with the Westpac–Melbourne Institute Consumer Sentiment Index falling 3.5% to 80.6. The result unwound much of May’s improvement and highlights that household confidence remains fragile.
• Cost-of-living pressures continue to weigh on sentiment, with the benefit from lower fuel costs proving short-lived. Reflecting this, assessments of household finances compared to a year ago fell 7.5% to 67.3.
• Business surveys painted a slightly more encouraging picture, with NAB Business Confidence improving to -14 from -24. While still subdued, it represents the strongest reading since February. Business conditions were unchanged at 3 index points, ending a four-month decline. Activity levels stabilised, although profitability remains under pressure as elevated costs continue to weigh on margins.
• Attention now shifts offshore, with Chinese CPI and PPI due today, alongside the key US CPI release for May. Both inflation prints will be closely watched following recent volatility in energy markets linked to the Iran conflict.