Confidence among consumers has nudged up slightly this week as the index struggles to climb out of historic lows.
The index, mapped by ANZ and Roy Morgan, increased by 0.6 points to 75.3 in early July as the new financial year takes hold. Consumer confidence is 11.2 points lower than a year ago, and is now 3.6 points above the 2026 weekly average of 71.7.
Driving consumer confidence slightly higher this week was more people expecting their personal finances to be ‘better off’ this time next year.
Now 16 per cent (up 1ppt) of Australians say their families are ‘better off’ financially than this time last year compared to a majority of 51 per cent (unchanged) that say their families are ‘worse off’.
Views on personal finances over the next year improved this week with 24 per cent (up 2ppts) of respondents expecting their family will be ‘better off’ financially this time next year, while 39 per cent (down 1ppt), expect to be ‘worse off’.
Sentiment regarding the economy over the next year also improved this week with 6 per cent (down 1ppt) of Australians expecting ‘good times’ compared to 37 per cent (down 3ppts) that expect ‘bad times’.
In the longer-term, 8 per cent (down 1ppt) of Australians are expecting ‘good times’ for the economy over the next five years compared to over a quarter, 27 per cent (up 1ppt), expecting ‘bad times’.
Buying intentions were virtually unchanged this week with just 19 per cent (unchanged) of respondents saying now is a ‘good time to buy’ major household items compared to 43 per cent (up 1ppt) that say now is a ‘bad time to buy major household items’.
ANZ economist Sophia Angala said the decline in the medium-term economic outlook occurred in the same week as the speech by RBA assistant governor Hunter, when he noted that economic growth will need to be slower to return inflation to the RBA’s 2–3 per cent target band.
“Weekly inflation expectations rose last week, after four consecutive weekly declines,” Angala said. “This may reflect inflation risks, as the Middle East conflict re-escalated during the survey period.
“Despite the rise, inflation expectations have been trending down since April. On a four-week moving average basis, inflation expectations are at their lowest level since mid-March.”
An analysis by state shows consumer confidence increased marginally in Victoria, Western Australia, and South Australia, down in Queensland, and unchanged in New South Wales.