ANZ-Roy Morgan Consumer Confidence has dropped by 0.8 points to 86.9 this week amid the onslaught of now ex-tropical cyclone Alfred in the coastal regions of South-Eastern Queensland and Northern New South Wales.
Consumer confidence is now 4.7 points above the same week a year ago and in line with the 2025 weekly average of 87.1.
ANZ economist Madeline Dunk said the index has fallen by 2.9 points over the past fortnight, but is still 1.8 points higher than before the Reserve Bank of Australia cut the cash rate in mid-February.
“Last week’s 0.8pt decline may be partly attributable to ex-Tropical Cyclone Alfred and its impacts on the communities of southern Queensland and northern NSW,” Dunk said.
“Queensland confidence fell more than other mainland states. Uncertainty about the global economic environment may have also played a role, with household confidence in the five-year economic outlook falling 3.5pts. Confidence in the 12-month outlook for the economy also declined 3.3pts.”
It also comes after inflation expectations lifted last week, now up 0.5 percentage points over the past fortnight.
“However, it is worth noting that expectations have moved off roughly a three and a half year low of 4.2 per cent,” Dunk added.
A look across the index shows decreasing confidence about the prospects for Australia’s economy over the next year and next five years, which drove this week’s decline.
More than a fifth of Australians (22 per cent – down 1ppt) say their families are ‘better off’ financially than this time last year compared to 45 per cent (down 2ppts) that say their families are ‘worse off’.
Views on personal finances over the next year weakened for a second straight week with 31 per cent of respondents (down 3ppts) expecting their family will be ‘better off’ financially this time next year while 28 per cent (down 1ppt) expect to be ‘worse off’.
Roy Morgan noted that this particular index remains the only one of the five in positive territory – for every week this year.
Views on the economy over the next year weakened this week with 9 per cent (down 1ppt) expecting ‘good times’ for the Australian economy over the next twelve months compared to 28 per cent (up 2ppts) that expect ‘bad times’.
Net sentiment regarding the Australian economy in the longer term weakened slightly this week with just 12 per cent (unchanged) of Australians expecting ‘good times’ for the economy over the next five years compared to 21 per cent (up 3ppts) expecting ‘bad times’.
Meanwhile, there was a small improvement in net buying intentions this week with only 25 per cent (up 1ppt) of Australians saying now is a ‘good time to buy’ major household items compared to 42 per cent (down 2ppts) that say now is a ‘bad time to buy major household items’.