The ANZ-Roy Morgan Consumer Confidence index remained steady at 86.7 this week, keeping above the 85 mark for a fourth consecutive week – a milestone last achieved in January 2023.
This week’s score is now 12.4 points above where it stood a year ago and 4.2 points higher than the 2024 weekly average, indicating gradual consumer resilience despite current economic conditions.
Looking at consumer confidence by state, there were slight increases in New South Wales, Western Australia, and South Australia. However, Victoria and Queensland saw minor declines, showing mixed regional attitudes.
These variations reflect differing economic conditions, employment outlooks, and local market factors affecting consumers across Australia.
Australians’ views on personal finances remain mixed. Just 22% of respondents feel financially better off than they did a year ago – a slight drop from the previous week. Meanwhile, 48% feel worse off, up marginally.
Expectations for the coming year held steady, with 34% anticipating improvement in their financial situation, while 30% foresee a decline, showing that concerns around cost-of-living pressures remain prominent.
In the short term, only 10% of Australians expect “good times” for the economy in the next year, while 30% predict “bad times,” a minor uptick in pessimism.
Over the longer term, however, sentiment improved slightly, with 14% of Australians expecting positive economic growth over the next five years. This figure, the highest since April 2024, suggests some optimism for gradual economic recovery.
With the holiday season approaching, 26% of Australians believe now is a good time to buy major household items. This is the highest level since January 2023, possibly linked to pre-Black Friday sales events, sparking consumer interest in larger purchases.
ANZ economist Madeline Dunk (pictured above) noted that confidence continues to trend upwards, especially among homeowners and mortgage holders.
“The four-week average of consumer confidence among outright homeowners and mortgage holders is now at its highest since June 2022,” Dunk said, noting that mortgage holders are currently more optimistic than renters.
As the Reserve Bank keeps interest rates at 4.35%, consumer confidence shows resilience as the year-end shopping season begins.
Meanwhile, the latest The Westpac–Melbourne Institute Consumer Sentiment Index rose 5.3% in November to 94.6, its highest in months, reflecting a 14.4% increase from mid-year lows as consumers report easing financial pressures and growing economic optimism, though uncertainties linger in some areas.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
