In the recent update from ANZ-Roy Morgan, the Consumer Confidence Index holds steady at 84.2, amidst Australia’s ongoing economic challenges marked by persistent inflation, elevated interest rates, and global uncertainties—all of which continue to influence consumer spending and borrowing habits.
The report revealed a static sentiment in New South Wales and Victoria, while Queensland experienced the most notable increase, a rebound effect post-Cyclone Alfred.
As of mid-March, the Consumer Confidence Index stands at 84.2, marginally up by 1.1 points from the same period last year, which recorded an index of 83.1.
However, it remains 2.4 points below the average for 2025, signaling a cautious optimism among consumers.
The ANZ-Roy Morgan survey highlighted a significant uptick in the sentiment regarding purchasing timing, with positivity reaching its highest since early February.
Approximately 21% of Australians feel their financial situation has improved over the past year, a slight decrease from previous figures. In contrast, 49% believe they are worse off, showing a small increase in financial dissatisfaction.
Expectations for the coming year are largely unchanged. About 31% of respondents anticipate an improvement in their financial condition, while 32% foresee a downturn, indicating a balanced yet cautious economic outlook among consumers, ANZ-Roy Morgan data showed.
Consumer expectations for the Australian economy over the next year remain unchanged, with only 8% optimistic about the forthcoming economic conditions. A consistent 32% of respondents expect challenging times ahead.
Looking further ahead, 11% of Australians are hopeful for the economy over the next five years, showing a slight increase in long-term economic confidence. However, 20% still hold a pessimistic view, expecting tougher economic conditions.
The subindex for purchasing major household items saw a modest rise, with 26% of respondents now considering it a favorable time to buy, compared to 43% who disagree.
This increase suggests a growing inclination towards making significant purchases despite overarching economic uncertainties.
Sophia Angala (pictured right), an economist at ANZ, attributed the slight increase in ANZ-Roy Morgan Australian consumer confidence last week to a notable boost in the “time to buy a major household item” subindex, which rose by 2.4 points to its highest level since the beginning of the year, possibly influenced by recent sales events.
Angala further noted the impact of global uncertainty on consumer confidence, which has dipped to its lowest four-week moving average since October, with financial and economic outlook subindices remaining below the latter half of 2024 averages.
In comparison, the Westpac-Melbourne Institute Consumer Sentiment Index rose 4% in March to 95.9, rebounding from a holiday dip following RBA’s February rate cut and easing cost-of-living pressures.
