Fresh consumer sentiment data released by UBS reveals a surge in spending intentions over the next 12 months. The data reached the highest level since the survey’s inception in 2019, signalling a potential boost for the Australian economy. This positive outlook has prompted UBS to revise its forecasts for real consumption growth in the coming years.
UBS economist George Tharenou announced the upgrades to the bank’s economic projections. The forecast for real consumption growth in 2025 has been lifted to 2 per cent year-on-year, a rise from the previous estimate of 1.9 per cent. Furthermore, the forecast for 2026 has also been adjusted upwards, now standing at 2.3 per cent, up from the initial 2.2 per cent.
According to Tharenou, the latest UBS consumer survey demonstrates remarkable strength. He emphasised that this positive sentiment aligns with hard economic data, specifically referencing real GDP and consumption figures from the second quarter of 2025. This convergence of survey data and economic indicators suggests a continued moderate recovery in the momentum of the Australian economy.
These revised forecasts suggest a more optimistic outlook for consumer spending and economic growth in Australia. The upgrades reflect increasing confidence in the economy’s ability to sustain its recovery and potentially accelerate in the coming years, driven by robust consumer sentiment.
