ANZ-Roy Morgan Consumer Confidence was virtually unchanged at 80.2 this week.
The index has now spent a record 67 straight weeks below the mark of 85, and is now 4.3 points above the same week a year ago and 2.3 points below the 2024 weekly average of 82.5.
There was little change in views on personal finances or the economy in the week before the Federal Budget but there was a decline in Australians saying now is a ‘good time to buy’ major household items in the week after the RBA left interest rates unchanged at a 12-year high.
ANZ economist Madeline Dunk said consumer confidence is very weak, sitting at its lowest level for the year.
“Despite the RBA [Reserve Bank of Australia] keeping the cash rate unchanged at last week’s meeting, consumer confidence fell 3.8pts for those paying off a mortgage,” Dunk said. “Confidence amongst this group is at a 2024 low, and is once again weaker than confidence amongst renters.
“This may be linked to recent discussion that rates will remain higher for longer. Within the subindices, confidence about the five-year outlook for the economy fell to its lowest level for the year. Similarly, the time to buy a major household item index was also at a 2024 low.
“We’ll be looking to see if confidence picks up following tonight’s Budget, which will contain a range of cost-of-living measures.”
There were mixed results across Australian states, with consumer confidence down in Victoria, Western Australia and South Australia but up slightly in New South Wales and Queensland.
Now a fifth of Australians (20 per cent - unchanged) say their families are ‘better off’ financially than this time last year compared to 50 per cent (down 1ppt) that say their families are ‘worse off’.
Views on personal finances over the next year were unchanged with 32 per cent expecting their family to be ‘better off’ financially this time next year while another 33 per cent expecting to be ‘worse off’.
Under one-in-ten Australians (9 per cent - unchanged) expect ‘good times’ for the Australian economy over the next twelve months compared to 33 per cent (down 2ppts) that expect ‘bad times’.
Meanwhile, 11 per cent (up 1ppt) of Australians expect ‘good times’ for the economy over the next five years compared to 22 per cent (up 1ppt) expecting ‘bad times’.
Net buying intentions were also down this week with 19 per cent (down 2ppts) of Australians saying now is a ‘good time to buy’ major household items, while 52 per cent (up 3ppts) say now is a ‘bad time to buy’. The latter is the highest figure for this indicator so far this year.