The ANZ-Roy Morgan Consumer Confidence index fell by 0.6 points to 80.5 this week, marking a continuous 66 weeks below the 85-point threshold.
This week’s figure is slightly up from last year’s same period but remains below the 2024 average, signaling persistent unease among Australian consumers.
Consumer Confidence showed mixed results across the states, with a significant drop in Victoria contrasted by minor improvements in New South Wales, Queensland, Western Australia, and South Australia. These regional differences reflect the uneven impact of current economic conditions across the country.
A key factor in the decline of consumer confidence this week is the growing pessimism about the Australian economy’s performance in the coming year.
About 20% of Australians feel they are financially better off than last year, yet 51% believe they are worse off. Expectations for the next year are slightly more optimistic, with 32% expecting to be better off, though 33% anticipate being worse off.
Only 9% of Australians are optimistic about the economy over the next 12 months, while 35% foresee difficult times. Sentiment for the economy’s five-year outlook has worsened, with only 10% optimistic about the future and 21% expecting challenges.
The sentiment on purchasing major household items also declined, with 49% of Australians considering it a bad time to buy, reflecting broader economic concerns influencing consumer behavior.
Madeline Dunk (pictured above), ANZ economist, provided further insight into the situation.
“ANZ-Roy Morgan Consumer Confidence declined 0.6pts last week and the four-week moving average fell to its lowest level since early January,” Dunk said. “The weakness in confidence may have been influenced by discussion that the RBA could raise rates this year or that rate cuts may be delayed.
“Households’ assessment of the economic outlook has softened throughout the year. Confidence in the 12-month outlook for the economy declined to its lowest level this year, and confidence in the five-year outlook recorded its second lowest reading since December.”
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
