The ANZ-Roy Morgan Consumer Confidence Index dropped 2.2 points to 81, marking its lowest level in 2024 and continuing a record 57-week streak below the 85-point mark.
Despite being slightly above last year’s figures, confidence remains below the 2024 weekly average.
Consumer confidence remained stable in New South Wales, Victoria, and Queensland, but declined in Western Australia and South Australia, showing no positive trends across the states.
Only 19% of Australians (down 1ppt) feel they are financially better off than last year, while a majority of 55% (up 2ppts) feel worse off, highlighting the financial pressures faced by many.
Expectations for the coming year are split, with equal numbers of Australians anticipating better (33%, unchanged) or worse (34%, up 2ppts) financial situations, underscoring the uncertainty in personal finance outlooks.
A small increase in optimism for the economy (11%, up 1ppt) in the next 12 months is overshadowed by a growing number of Australians bracing for tougher economic times (32%, up 3ppts).
Sentiment towards the economy over the next five years has worsened slightly, with more Australians expecting challenging times ahead (20%, up 2ppts). In contrast, 12% (down 1ppt) were expecting “good times.”
Intentions to buy major household items have stayed nearly the same, with a significant portion of Australians deeming it a bad time for such purchases (50%, up 2ppts), reflecting caution in spending behaviours. Only 21% (up 1ppt) said now’s a “good time to buy.”
Adelaide Timbrell (pictured above), ANZ senior economist, highlighted the impact of weak retail sales and a lower-than-expected CPI indicator on consumer confidence.
“Weak retail sales results may have dampened optimism about the future of the economy, while the monthly CPI indicator, which came in lower than expected at 3.4% y/y, may have influenced the moderation in inflation expectations,” Timbrell said. “Inflation expectations fell back to their equal-lowest result since early February 2022.”
Timbrell also noted differing trends in confidence among homeowners, renters, and outright owners, indicating varied financial experiences across the board.
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