Australia's consumer sentiment rose in May as the oil shock from the Iran war showed signs of easing. However, uncertainty over energy supplies and the third straight rate hike kept the mood glum.
A Westpac-Melbourne Institute survey showed its main index rose 3.5% to 83 in May from April, when it slumped 12.5% to its lowest in over two years due to Middle East conflict concerns.
A reading below 100 means pessimists outnumber optimists.
Westpac's Head of Australian Macro-Forecasting Matthew Hassan said: "Despite a small improvement, consumers remain deeply pessimistic. Forward views are weighed down by global energy supply uncertainty with the Strait of Hormuz still effectively shut. Rate rise fears are also in the mix."
Minutes of the Reserve Bank of Australia's May board meeting showed the central bank judged interest rates restrictive after three hikes this year, giving it space to watch the Iran war, even as inflation is expected to rise and growth slow.
