Consumer confidence steady

ANZ-Roy Morgan Consumer Confidence remained steady at 80.5 this week, marking a record 70 consecutive weeks below the 85-point threshold.

This figure is 4.7 points higher than the same week last year but still 1.8 points below the 2024 weekly average of 82.3.

“ANZ-Roy Morgan Australian Consumer Confidence edged up 0.3pts last week to move off its 2024 low,” said Madeline Dunk (pictured above), ANZ economist. “That said, the series remains very weak, averaging only 82.3pts in 2024 and 80.7pts in May. Confidence has been stuck below the neutral level of 100 for over two years.”

State-level confidence varied, with increases in Victoria, South Australia, and Western Australia, a decrease in Queensland, and stability in New South Wales.

Persistent negative sentiment

All five index questions remained in negative territory for the second consecutive week.

• Current financial conditions: Just 21% (down 1ppt) of Australians feel better off financially than a year ago, while 51% (unchanged) feel worse off.
• Future financial conditions: 31% (unchanged) expect their financial situation to improve over the next year, with 35% (unchanged) expecting it to worsen, the highest figure for this indicator this year.
• Short-term economic confidence: Only 8% (unchanged) foresee “good times” for the economy in the next twelve months, compared to 35% (unchanged) anticipating “bad times.”
• Medium-term economic confidence: Sentiment remained virtually unchanged, with 12% (up 1ppt) predicting “good times” for the economy over the next five years, and 21% (up 1ppt) expecting “bad times.”
• Major household purchases: Buying intentions were steady, with 21% (unchanged) considering it a good time to buy major household items, while 49% (down 2ppts) think it's a bad time.

Inflation expectations

Dunk noted that inflation expectations rose by 0.1 points to 5.0% last week, potentially influenced by stronger-than-expected consumer price index data. The ANZ economist highlighted that although this is the highest reading in a month, the overall trend remains downward and significantly below the November 2022 peak of 6.8%.

Click here for the ANZ-Roy Morgan Consumer Confidence report. To compare the latest figures with the previous results, click here.

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