The latest ANZ-Roy Morgan Australian Consumer Confidence survey revealed a 1.1-point drop in consumer confidence last
week, settling at 85.7 points.
This marks a continuation of the cautious sentiment that has persisted since mid-August, with the four-week moving average dipping slightly to 86.4 points.
Confidence in both current and future financial conditions weakened last week.
The “current financial conditions” sub-index, reflecting perceptions of personal financial well-being over the past year, declined by 0.5 points. Meanwhile, “future financial conditions,” which gauges expectations for the next 12 months, dropped by a more significant 4.2 points.
Short-term economic confidence also fell, with the sub-index for the next 12 months slipping 2.2 points. Similarly, confidence in the economy's medium-term prospects (next five years) edged down by 0.7 points.
Inflation expectations rose 0.3 percentage points to 5%, the highest level in three months. The four-week moving average also ticked up, reaching 4.8%.
“The decline in consumer confidence was largely broad-based, with households feeling less optimistic about both financial and economic conditions. Inflation expectations have risen to a three-month high, adding to concerns,” ANZ economist Sophia Angala (pictured above) said.
Amid the otherwise gloomy results, the “time to buy a major household item” sub-index showed a positive uptick, rising 2.5 points to 81.5. This increase, the highest since late 2022, is likely linked to Black Friday sales events.
“While overall confidence remains subdued, the rise in the household spending sub-index suggests consumers may be taking advantage of seasonal sales,” Angala said.
Access the ANZ-Roy Morgan Australian Consumer Confidence report here. To compare the latest results with the previous data, click here and here.
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