Optimism Among Australians Shifting the Fastest in APAC: Survey

While other countries remain more optimistic overall, sentiment remains static, while Australians, despite global uncertainty, are becoming more positive.

In this photo illustration, Australian $50, $20, $10 and $5 banknotes and dollar coins are shown arranged for a photograph in Newcastle, Australia on March 25, 2025. Roni Bintang/Getty Images

Among the five Asia-Pacific (APAC) countries surveyed, Australia experienced the greatest shift in consumer sentiment over the last quarter, according to the latest research from McKinsey & Company’s ConsumerWise.

Net sentiment (optimism minus pessimism) rose by 3 percent compared to the previous quarter. In contrast, consumer sentiment across most APAC countries remained relatively unchanged.

McKinsey attributes the uptick in Australian sentiment to “growing optimism about an anticipated economic rebound following a period of sluggish growth.”

Australians are still far from being the most positive overall, but there are wide variations between countries.

A year ago, 26 percent of Australians were optimistic. In the 2nd quarter of 2025 that had risen to 28.

India remains the most positive overall, with 76 percent of its population confident, the same as a year ago. Pessimists in India remain at 6 percent, while in Australia they’ve dropped from 20 to 17 percent.

U.S. President Donald Trump’s announcement on tariffs left most Australian consumers unfazed—only 20 percent of consumers reported actively seeking information about tariffs, and 21 percent said they had adjusted their shopping behaviour in response, among the lowest levels of engagement across the surveyed countries.

On the other hand, Indian consumers are highly engaged when it comes to tariffs, with 43 percent actively seeking out information on the topic.

Moreover, 72 percent reported that they have already changed, or are expecting to change, their spending behaviour as a result. Similary, approximately 23 percent of those in China report being extremely concerned about tariffs, but how this will influence spending remains unclear, especially as the “intent to splurge” (spend a lot on discretionary items such as entertainment) continues to rise from already elevated levels.

Almost 60 Percent Worried About the Cost of Living

Rising prices and inflation are the leading causes of concern across the entire Asia-Pacific, worrying 58 percent of Australians, 53 percent of Chinese, 64 percent of Japanese—who are contending with inflation levels not seen since the 1990s—and 65 percent of South Koreans. Even the more optimistic Indians are beginning to worry, with 38 percent citing this as a concern.

Overall, however, the number of consumers citing rising prices as a top concern has dropped 10 percent compared to the previous quarter.

The number of Australians who said they were worried about their ability to make ends meet rose 2 percent to 31 in the latest survey, the second highest figure behind Japan (38 percent).

India continues to stand out as a leader in consumer spending across APAC. Intent to spend remains strong, and “intent to splurge” remains at the highest level relative to other countries in the region at 41 percent. That’s compared to just 25 percent of Australians.

Indians and Australians are far more worried about their personal safety and threat of violence (22 and 25 percent respectively) than other APAC countries; in South Korea the figure is just 4 percent, and in Japan, 2 percent.

Despite rising global tensions and Beijing’s dispatching of three warships to circle their coastline, Australians remain sanguine about international conflicts, with 12 percent saying this was a concern.

That’s less than India (19 percent), Japan (also 19 percent) or South Korea (15 percent), but much higher than China, where no one in the survey expressed any concern.