ANZ-Roy Morgan Consumer Confidence lifted just 0.2 percentage points to 86.0 on the Australia Day long weekend, driven by homeowners and pulled back by renters.
Consumer Confidence is now 3.5 points above the same week a year ago and 3.1 points above the 2024 weekly average of 82.9.
ANZ economist Sophia Angala said the steady change came as weekly inflation expectations fell 0.2 points to 5 per cent, which was actually a pullback of the six-month high in the week prior.
“Households are feeling more confident about their future financial conditions and the economic outlook over the next 12 months,” Angala said. “Notably, the short-term economic confidence subindex lifted to its highest level since April 2022, before the first rate hike in May 2022.
“Across the housing cohorts, confidence amongst renters and mortgage-holders have moved sideways on a four-week moving average basis. Meanwhile, confidence amongst outright homeowners continues to move upwards, as the four-week moving average lifted to its highest level since the beginning of the rate hike cycle, May 2022.”
According to the index, buying intentions were down for a third straight week – the only index to register consecutive weekly declines – which was more than offset by improved sentiment for personal finances and the economy over the next year.
Just a fifth of Australians (20 per cent – down 1ppt) say their families are ‘better off’ financially than this time last year compared to 48 per cent (unchanged) that say their families are ‘worse off’.
Views on personal finances over the next year improved this week due to a decline in negative sentiment with just 34 per cent of respondents (unchanged) expecting their family will be ‘better off’ financially this time next year while 29 per cent (down 2ppts) expect to be ‘worse off’.
Views on the economy over the next year were virtually unchanged this week with just one-in-ten Australians (10 per cent – up 1ppt) expecting ‘good times’ for the Australian economy over the next twelve months compared to 27 per cent (unchanged) that expect ‘bad times’.
Net sentiment regarding the Australian economy in the longer term was also unchanged this week with 12 per cent (unchanged) of Australians expecting ‘good times’ for the economy over the next five years compared to 20 per cent (unchanged) expecting ‘bad times’.
There was also a slight dip in net buying intentions this week with 25 per cent (unchanged) of Australians saying now is a ‘good time to buy’ major household items compared to 47 per cent (up 1ppt) that say now is a ‘bad time to buy major household items’.
A look at consumer confidence by state shows increases in the two largest states of New South Wales and Victoria, but declines elsewhere in Queensland, Western Australia, and South Australia.