Consumer confidence in Australia jumped 4.1 points to 87.5, marking the highest level since January 2023, according to ANZ and Roy Morgan.
For the first time in 90 weeks, the index broke out of the sub-85 range, now sitting 9.3 points above the same period last year and 5.2 points higher than the 2024 weekly average.
Every mainland state saw an uptick in confidence, with New South Wales, Queensland, and South Australia experiencing the largest gains. The rise was driven primarily by a significant reduction in negative sentiment across all five confidence indicators.
Nearly a quarter of Australians (24%) now say they are better off financially than a year ago, while the percentage of those worse off dropped to 45% – the lowest figure in 18 months.
More than a third (34%) expect their financial situation to improve next year, while only 29% expect it to worsen, a marked decline in pessimism.
Just 8% expect good times for the economy over the next year, but the proportion expecting bad times dropped to 28%, the lowest since April 2022.
Longer-term sentiment also improved, with only 17% forecasting bad economic times over the next five years – the lowest since March 2023.
Buying sentiment for household items improved, with 24% saying it is a good time to buy – a two-year high. Although 45% still view it as a bad time to buy, this figure has steadily declined.
ANZ economist Madeline Dunk (pictured above) attributed the rise in consumer confidence to stronger-than-expected labour market data, with employment growing by 64.1k in September and a record-high participation rate.
Meanwhile, inflation expectations dipped to 4.5%, the lowest reading since 2021. As RBA Assistant Governor Sarah Hunter noted, the central bank is “not currently concerned that [inflation] expectations could become de-anchored in the near term.”
Read the ANZ-Roy Morgan Consumer Confidence report in full here. To compare the latest figures with the previous week’s, click here.
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