ANZ-Roy Morgan Consumer Confidence increased 4.1 points to 87.5 this week, surpassing the mark of 85 for the first time in 90 weeks.
It is now at its highest level since January 2023.
Consumer Confidence is now 9.3 points above the same week a year ago and 5.2 points above the 2024 weekly average of 82.3.
The index grew across all states in Australia, and was driven by falls in negative sentiment across key indicators, according to Roy Morgan and ANZ.
Now nearly a quarter of Australians (24 per cent - up 3ppts) say their families are ‘better off’ financially than this time last year compared to 45 per cent (down 4ppts) that say their families are ‘worse off’. This is the lowest figure for this indicator for well over 18 months since January 2023.
Views on personal finances over the next year improved, with 34 per cent (up 1ppt) of respondents expecting their family to be ‘better off’ financially this time next year while only 29 per cent (down 2ppts) expect to be ‘worse off’.
Now under one-in-ten Australians (8 per cent - down 2ppts) expect ‘good times’ for the Australian economy over the next twelve months compared to only 28 per cent (down 2ppts) that expect ‘bad times’. This is the lowest figure for this indicator for well over two years since April 2022.
Net sentiment regarding the Australian economy in the longer term also improved this week with 11 per cent (unchanged) of Australians expecting ‘good times’ for the economy over the next five years compared to 17 per cent (down 3ppts) expecting ‘bad times’.
Meanwhile, 24 per cent (up 4ppts) are saying now is a ‘good time to buy’ major household items, compared to a plurality of 45 per cent (down 3ppts) that say now is a ‘bad time to buy’ major household items - the lowest figure for this indicator for two years since October 2022.
ANZ economist Madeline Dunk said all subindices improved in the consumer confidence bump up, with households’ confidence in their current and future financial conditions reaching a 90-week high.
“The boost in confidence may be linked to last week’s stronger than expected labour market data which showed employment grew 64.1k in September and the participation rate was at a record high,” Dunk said.
“Inflation expectations continued trending downwards. The measure dropped 0.1ppts last week to 4.5 per cent, its lowest reading since late 2021.
“RBA assistant governor Sarah Hunter noted last week that the RBA are ‘not currently concerned that [inflation] expectations could become de-anchored in the near term’.”