This week, the ANZ-Roy Morgan Consumer Confidence Index rose by 1.6 points, reaching 83.5 – the highest level observed in over two months since early February.
Despite the increase, the index has remained below the 85-point mark for a record 63 consecutive weeks.
Consumer confidence saw an increase in New South Wales, Victoria, and Queensland, while it declined in Western Australia and South Australia, reflecting mixed economic sentiments across the states.
The rise in consumer confidence this week was fueled by improved perceptions of personal financial situations and more favourable views on the timing to purchase major household items.
Currently, 22% of Australians feel they are financially better off than last year, an increase of 3 percentage points. However, half of the population still feels worse off.
Expectations for personal financial conditions over the next year show that 33% of Australians believe they will be better off, which is a slight improvement from previous measurements.
Economic confidence in the short and medium term
Short-term economic optimism slightly increased, with 11% of Australians anticipating good economic times in the next twelve months. Looking further ahead, 14% expect positive economic conditions over the next five years, indicating a cautious but improving economic outlook.
Sentiment about purchasing major household items remained largely stable, with 23% considering it a good time to buy, despite 47% viewing it as a bad time.
Madeline Dunk (pictured above), ANZ economist, provided insights into the persistent challenges in consumer confidence.
“Despite a small lift in ANZ-Roy Morgan Consumer Confidence, the series remains stubbornly weak, averaging just 83 points in 2024,” Dunk said in a media release. “While this is higher than 2023’s 78-point average, it is still 30 points off the series’ pre-COVID (1990- 2019) average of 113 points.”
She said that last week’s increase was driven by a rise in the financial conditions subindices, with a five-point increase in current financial conditions.
Weekly inflation expectations edged down to 5.2%, although the four-week moving average climbed to a three-month high, suggesting ongoing concerns about inflation among Australian consumers.
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