ANZ-Roy Morgan Consumer Confidence has plunged 3.5 points to 77.0 this week and has now spent a record 71 straight weeks below the mark of 85.
Consumer Confidence is still, however, 4.3 points above the same week a year ago, but 5 points below the 2024 weekly average of 82.0.
This is the lowest level of consumer confidence so far this year.
The fall was driven by percentage declines across the index this week, led by questions relating to the next 12 months in terms of personal finances and the Australian economy.
Now 19 per cent (down 2ppts) say their families are ‘better off’ financially than this time last year compared to 53 per cent (up 2ppts) that say their families are ‘worse off’.
Just over a quarter of Australians (27 per cent - down 4ppts) expect their family to be ‘better off’ financially this time next year, while another 36 per cent (up 1ppt) are expecting to be ‘worse off’. These indicators are respectively the lowest and highest figures so far this year.
Only 7 per cent (down 1ppt) expect ‘good times’ for the Australian economy over the next twelve months compared to 39 per cent (up 4ppts) that expect ‘bad times’. These indicators are also respectively the lowest and highest so far this year.
Net sentiment regarding the Australian economy in the longer term also declined this week with 10 per cent (down 2ppts) of Australians expecting ‘good times’ for the economy over the next five years compared to 21 per cent (unchanged) expecting ‘bad times’.
Meanwhile, there was little change to net buying intentions this week with just over a fifth (22 per cent - up 1ppt) of Australians saying now is a ‘good time to buy’ major household items while 51 per cent (up 2ppts) say now is a ‘bad time to buy’.
“ANZ-Roy Morgan Australian Consumer Confidence recorded its largest weekly fall of the year to drop below 80pts for the first time in six months,” ANZ economist Madeline Dunk said.
“There were broad-based declines across all subindices, possibly in response to last week’s GDP data which confirmed Australia’s economic growth is very weak.
“Households were particularly wary about the year ahead, with subindices for the 12-month outlook for the economy and households’ own financial situation recording their largest weekly declines of the year. This leaves both subindices at their lowest levels since November.
“Across the housing cohorts, confidence is at a 2024 low for households with a mortgage and those who own their home outright, but not for renters, despite a 6.3pt fall in confidence last week.”