Consumer confidence slips again, but averaging better

ANZ-Roy Morgan Consumer Confidence fell 0.4 percentage points to 82.6 this week. 

Consumer confidence has now spent a record 82 straight weeks below the mark of 85. However, the index is now 4.5 points above the same week a year ago and 0.7 points above the 2024 weekly average of 81.9.

ANZ economist Madeline Dunk said the slight fall was driven by lower confidence among Australians over economic and personal finances, which was partially offset by a lift in the ‘time to buy a major household item’ measure. 

“Since the start of July, there has been a steady move higher in ANZ-Roy Morgan Consumer Confidence amongst renters, and the four-week moving average is at its highest level since March 2023,” Dunk said. 

“Confidence amongst renters is once again higher than it is for those paying off a home loan.”

Now over a fifth of Australians (21 per cent - down 2ppts) say their families are ‘better off’ financially than this time last year compared to 48 per cent (up 1ppt) that say their families are ‘worse off’.

Views on personal finances over the next year were virtually unchanged this week with 32 per cent (unchanged) of Australians expecting their family to be ‘better off’ financially this time next year, while 33 per cent (up 1ppt) are expecting to be ‘worse off’.

Fewer than one in ten Australians (8 per cent - unchanged) expect ‘good times’ for the Australian economy over the next twelve months compared to a third (33 per cent - unchanged) that expect ‘bad times’.

Net sentiment regarding the Australian economy in the longer term was also virtually unchanged this week with only 11 per cent (unchanged) of Australians expecting ‘good times’ for the economy over the next five years compared to 19 per cent (up 1ppt) expecting ‘bad times’.

As previously mentioned, buying intentions saw the most improvement, with 23 per cent of Australians (up 3ppts) saying now is a ‘good time to buy’ major household items, compared to a large plurality of 49 per cent (unchanged) that say now is a ‘bad time to buy’ major household items.