Mortgage holders’ confidence crashes to lowest level since 1994 as year that ‘feels like a recession’ looms

Westpac survey results signal growing sense of ‘helplessness’ while Jim Chalmers faces growing pressure to rein in spending

Confidence among mortgaged households has crashed to its lowest level in more than three decades amid a growing sense of “helplessness” about the economy, even as a dramatic shift in financial markets suggests there is now a strong chance of a Reserve Bank rate cut by this time next year.

The latest Westpac survey showed its consumer sentiment index sinking again in November to reach a four-year low, amid deepening pessimism about the near-term prospects for the economy.