Jed Simpfendorfer.
Jed Simpfendorfer – Director of Strategy & Partner, T garage
It’s been the long-haul economy flight for Australian consumer sentiment.
We’ve weathered the past few years with a mix of patience and belt-tightening. Rising inflation, rising interest rates, rising rents. We’ve reduced spending, delayed major purchases, turned to home cooking, and hunted for small joys to get us through.
Then came Christmas '24. Inflation cooled, interest rates dipped, and there was a flicker of hope. We glanced up at the departures board, thinking maybe we were finally boarding the flight home, back to spending more freely and a sense of normalcy.
But global uncertainty has kept us parked in the transit lounge. In April, tariff threats crept back onto the radar, share markets wobbled, and even the Teflon Boomers began to feel a little uneasy.
June 2025 Check-in (T garage, N=774 nationally representative)
So where are we now?
Still sitting in economic limbo. Things haven’t quite progressed as we’d hoped. Not quite ready to splurge, not collapsing either. We’re stuck between “nearly there” and “not yet.” Things have been worse. But they’ve also been better.
That said, there are flickers of optimism.
When we track the top 10 consumer concerns, most have declined, not dramatically, but enough to show some relief:
Key Concerns, that have decreased over time.
- Cost of living down -5%
- Concern for the Australian economy down -6%
- Petrol prices down -8%
- Worries about household income down -5%
Encouraging signs. Soft signals that sentiment is shifting, slowly, in a positive direction.
But the recovery won’t be even.
The generational wealth gap is real. The percentage of Australians who are “very concerned” or “extremely concerned” remains high — particularly among families.
The % of Australians, who are very concerned + extremely concerned
Right now, it’s families with kids and mortgages doing it toughest. Over half are seriously worried about their finances. They’re prioritising essentials, groceries, kids’ needs, utility bills, and spending what's left on health and the occasional catch-up with friends.
What is being cut?
Tobacco and alcohol, fast food, holidays, and even coffee. Yes, even coffee.
And the most anxious generation about Australia’s economic future? Gen Z.
They’re facing a different world: delaying home ownership, delaying family life, making frugal decisions, and redefining what progress looks like.
A new normal is emerging — but it won’t look the same for everyone.
As we slowly taxi toward economic recovery, the view out the window will depend on where you’re sitting — and how much legroom life has given you.
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