Australia sees sharpest rise in consumer optimism across APAC

Net optimism in Australia rose by three percentage points.

Australia has recorded the strongest improvement in consumer sentiment amongst five major Asia-Pacific (APAC) economies, according to data released by McKinsey & Co.

Net optimism in Australia rose by three percentage points compared to the previous quarter, marking the sharpest shift in sentiment across the region.

Whilst consumer outlooks in China, Japan, South Korea, and India remained largely unchanged amid ongoing geopolitical tensions, Australian consumers appear increasingly confident in the country’s economic trajectory.

Analysts suggest the rise in optimism reflects growing expectations of an economic rebound following a period of sluggish growth.

Despite the positive sentiment, Australians showed limited engagement with recent tariff developments.

Only 20% of respondents reported actively seeking information about tariffs, and just 21%  indicated changes in their shopping behavior in response—amongst the lowest rates of engagement recorded in the survey.