Australia’s consumer sentiment recorded a modest improvement in May, but households remain overwhelmingly pessimistic as high borrowing costs and global energy concerns continue to pressure family budgets. The latest Westpac Banking Corporation–Melbourne Institute survey showed the consumer sentiment index rose 3.5 per cent to 83, recovering slightly after a sharp fall in April. Any reading below 100 indicates that pessimists significantly outnumber optimists. Matthew Hassan said consumers are still deeply concerned about uncertainty in global oil and gas supplies, particularly as tensions in the Middle East and disruptions to the Strait of Hormuz affect energy prices. The mood has also been dampened by the Reserve Bank of Australia delivering its third consecutive interest rate increase, adding further strain to mortgage holders and consumers already grappling with persistent cost-of-living pressures.