[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-661277-105":3,"detail-sidebar-cat-0-en-105":81,"doc-detail-661277-en":130},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":74,"head_meta":76,"extra_data":78,"updated_unix":80},105,"en","the-red-book-august-2026","THE RED BOOK - August 2026","","Westpac Red Book August 2026 reviews Australian consumer sentiment and spending signals at a time of continued financial strain. Sentiment remains near historic lows, with inflation and interest-rate rise fears still shaping expectations. The report examines a perceived disconnect between sentiment indicators and actual spending, linking it to high inflation, fatigue from repeated shocks, and divergences across consumer sub-groups. It outlines risks, tracks key sentiment measures, and provides economic and consumer forecast tables for the coming months.",{"@graph":14,"@context":73},[15,34,56],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/research-report/","Research & Report",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/document/the-red-book-august-2026/661277/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/the-red-book-august-2026/661277.png","ImageObject",300,407,{"name":42,"@type":43},"Well Done","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-10-29","2026-10-28",true,{"@type":52,"interactionType":53,"userInteractionCount":55},"InteractionCounter",{"@type":54},"ViewAction",5,{"@type":57,"mainEntity":58},"FAQPage",[59,65,69],{"name":60,"@type":61,"acceptedAnswer":62},"What is the main message of the August 2026 Red Book?","Question",{"text":63,"@type":64},"Australian consumer sentiment remains weak and near historic lows, with finances under pressure and inflation and interest-rate fears still dominant.","Answer",{"name":66,"@type":61,"acceptedAnswer":67},"Why does the report discuss a disconnect between sentiment and spending?",{"text":68,"@type":64},"It suggests the gap is linked to high inflation and the fatigue from multiple shocks, with sentiment improving differently from spending patterns.",{"name":70,"@type":61,"acceptedAnswer":71},"How has risk aversion changed according to the report?",{"text":72,"@type":64},"Risk aversion has spiked back to near historical highs, with heightened preference for “safe options” in savings decisions.","https://schema.org",{"og:url":32,"og:type":75,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":77,"canonical":32},"index,follow",{"doc_id":79,"site_id":7},661277,1793162316,{"code":4,"msg":82,"data":83},"success",[84,88,92,96,100,105,110,114,119,122,126],{"id":22,"doc_module":4,"doc_module_name":25,"category_name":85,"show_sort_weight":86,"slug":87},"Story & Novel",90,"story-novel",{"id":26,"doc_module":4,"doc_module_name":25,"category_name":89,"show_sort_weight":90,"slug":91},"Literature",80,"literature",{"id":33,"doc_module":4,"doc_module_name":25,"category_name":93,"show_sort_weight":94,"slug":95},"Exam",70,"exam",{"id":55,"doc_module":4,"doc_module_name":25,"category_name":97,"show_sort_weight":98,"slug":99},"Comic",60,"comic",{"id":101,"doc_module":4,"doc_module_name":25,"category_name":102,"show_sort_weight":103,"slug":104},6,"Technology",50,"technology",{"id":106,"doc_module":4,"doc_module_name":25,"category_name":107,"show_sort_weight":108,"slug":109},7,"Healthcare",40,"healthcare",{"id":111,"doc_module":4,"doc_module_name":25,"category_name":29,"show_sort_weight":112,"slug":113},8,30,"research-report",{"id":115,"doc_module":4,"doc_module_name":25,"category_name":116,"show_sort_weight":117,"slug":118},9,"Religion & Spirituality",20,"religion-spirituality",{"id":117,"doc_module":4,"doc_module_name":25,"category_name":120,"show_sort_weight":117,"slug":121},"World Cup","world-cup",{"id":123,"doc_module":4,"doc_module_name":25,"category_name":124,"show_sort_weight":123,"slug":125},10,"Lifestyle","lifestyle",{"id":127,"doc_module":4,"doc_module_name":25,"category_name":128,"show_sort_weight":55,"slug":129},19,"General","general",{"code":4,"msg":82,"data":131},{"doc_id":79,"user_id":132,"nickname":42,"user_avatar":133,"doc_module":4,"category_id":111,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":55,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":139,"language":140,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":12,"update_tm":80,"read_time":144},5909892210082,"https://ap-avatar.wpscdn.com/avatar/56001069da27c9f41e8?x-image-process=image/resize,m_fixed,w_180,h_180&k=1789614185077863061","August 2026  \nTHE RED BOOK  \nQuarterly update on the Australian consumer  \nCONTENTS  \nOverview 3  \nQuick run-down 4  \nConsumer mood: fatigued 5  \nSpecial topics  \nSentiment-spending disconnect? 7  \nSentiment indicators  \nSpending: drowning or just waving? 9  \nInterest rates: a little less troubling 11  \nInflation: better than feared 12  \nDurables: holding the line 15  \nDwellings: at a crossroads? 14  \nHouse prices: turning down fast 15  \nRisk aversion: rattled again 16  \nJob security: steadier 17  \nState snapshot: Victoria 18  \nSummary and forecast tables  \nEconomic and financial forecasts 19  \nConsumer data and forecasts 21  \n[westpaciq.com.au](westpaciq.com.au)  \nThe Westpac Red Book report is produced by Westpac Economics.  \nEditor: Matthew Hassan  \n[Internet: www.westpac.com. au](Internet: www.westpac.com. au)  \nEmail: [economics@westpac.com. au](economics@westpac.com. au)  \n[This issue was finalised on 13 August 2026](This issue was finalised on 13 August 2026) .  \nThe next issue will be published 16 October 2026.  \nPast performance is not a reliable indicator of future performance . The forecasts given above are predictive in character. Whilst every effort has been taken to ensure that the assumptions on which the forecasts are based are reasonable, the forecasts may be affected by incorrect assumptions or by known or unknown risks and uncertainties . The results ultimately achieved may differ substantially from these forecasts .  \nWESTPAC ECONOMICS 2  \nOVERVIEW  \nAnother winter of discontent  \nThe Australian consumer remains out of sorts. Sentiment is stuck near historicallows, with finances under pressure and inflation and interest rate rise fears still dominating the outlook. While some of the situation has improved slightly since May, it looks like a long road back to ‘normal’.  \nAs discussed on p7, sentiment reads have been much weaker than actual spending in recent years. The apparent disconnect is likely due to a mix of legacy effects from COVID and the specific challenges posed by high inflation.  \nHowever, it may also simply be a case of fatigue. Consumers have had to contend with a series of major shocks since the turn of the decade, including: COVID; the post-COVID inflation; Russia’s invasion of Ukraine, last year’s ‘liberation day’tariff turmoil and this year’s conflict in the Middle East. The most recent shocks have come with the added stress of daily twistsand turns and conflicting signals from the US President at their epicentre. Throw in an AI revolution, a possible bubble in tech stocks, and now a housing downturn locally and it has been... ‘a lot’.  \nOur August Red Book surveys the consumer psychological scene more closely. Of particular note is the widening divergence in sentiment across sub-groups and how this appears to be factoring in shifting political support between the major and minor parties.  \nThe main takeaway however is that we need to be very careful with mapping sentiment levels and changes to spending at the moment. This is something we have been well aware of for some time and have allowed for in our forecasts.  \nOur working hypothesis is that much of the current disconnect relates to high inflation. As such, it should become less of an issue as we see a sustained moderation in inflation over the next 12-18 months. That said, the narrowing in the gap is likely to come through sentiment recovering significantly before we see much of a lift in spending growth. This reinforces our general view that a sluggish rather than outright weak demand environment now will be followed by an equally sluggish recovery. The sense of fatigue may fadebut the going is likely to remain slow.  \n1. Consumer spending: renewed squeeze  \nann% ann%  \n9  \n7  \n5  \n3  \n1  \n-1  \n-3  \n-5  \n-7  \n9  \n7  \n5  \n3  \n1  \n-1  \n-3  \n-5  \n-7  \nMar-01 Mar-06 Mar-11 Mar-16 Mar-21 Mar-26  \n“... a long road back to ‘normal”  \nPast performance is not a reliable indicator of future performance . The forecasts given above are predicti","cbCaidMcchK74iL6","https://ap.wps.com/l/cbCaidMcchK74iL6","pdf",868576,25,"English","# Overview\n## Another winter of discontent\n# Quick run-down\n## Consumer sentiment index and risk aversion","[{\"question\":\"What is the main message of the August 2026 Red Book?\",\"answer\":\"Australian consumer sentiment remains weak and near historic lows, with finances under pressure and inflation and interest-rate fears still dominant.\"},{\"question\":\"Why does the report discuss a disconnect between sentiment and spending?\",\"answer\":\"It suggests the gap is linked to high inflation and the fatigue from multiple shocks, with sentiment improving differently from spending patterns.\"},{\"question\":\"How has risk aversion changed according to the report?\",\"answer\":\"Risk aversion has spiked back to near historical highs, with heightened preference for “safe options” in savings decisions.\"}]","THE RED BOOK - August 2026 | PDF",63]