Households are expected to remain optimistic heading into 2026

The Westpac McDermott Miller Consumer Confidence Index rose 5.6 points in the December quarter to 96.5, its highest level this year

Scores below 100 indicate slightly more households are pessimistic than optimistic

Senior Economist Satish Ranchhod says the increase follows significant interest rate cuts over the past year.

He says over the coming year, more borrowers will roll on to lower interest rates which will help confidence.