The ANZ-Roy Morgan Consumer Confidence Index climbed 1.8 points to 84.1 in mid-September, marking an eight-week high.
Despite this improvement, consumer confidence has remained below 85 for a record 85 consecutive weeks.
The current level is 4.3 points higher than the same time last year and 2.1 points above the 2024 weekly average of 82.
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Consumer confidence showed mixed trends across Australia. While it increased in Victoria and Western Australia, it fell slightly in New South Wales, Queensland, and South Australia.
“The lift was broad-based, with current financial conditions the only subindex to decline,” said ANZ economist Madeline Dunk (pictured above).
Sentiment about personal finances in the coming year improved, with 33% of Australians expecting to be better off, up 1 percentage point from the previous week. Meanwhile, 30% of respondents now expect to be worse off, down by 2 points.
However, when reflecting on current financial conditions, 48% of Australians reported feeling worse off than a year ago, while only 22% said they were better off.
Australians remain cautious about the broader economic outlook. Just 9% anticipate good times for the economy over the next 12 months, while 32% foresee bad times.
Longer-term confidence is similarly muted, with only 12% expecting good times over the next five years, compared to 21% who predict tough times ahead.
More Australians believe now is a good time to buy major household items, with 23% expressing optimism, up by 3 points. However, a large portion – 48% – still say it’s a bad time to make major purchases.
Dunk highlighted that “households were feeling more confident about the economic outlook” despite the ongoing financial pressures.
Confidence trends have diverged across different housing groups. Homeowners who have paid off their mortgage saw a 1.7-point increase in confidence, while it fell 1.3 points for renters and 0.2 points for those still paying off a mortgage.
Although renters remain slightly more confident than mortgage holders, the gap is narrowing.
Read the ANZ-Roy Morgan report. Compare the latest data with the prior week’s figures.
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