ANZ-Roy Morgan Consumer Confidence dropped by 0.5pts to 76.5 this week – the lowest rating since April 4/5, 2020 (71.9) in the early days of the COVID-19 pandemic.
It is now 14.7pts below the same week a year ago (March 14-20, 2022 - 91.2) and 5.6pts below the 2023 weekly average of 82.1.
Consumer confidence was up in Victoria, Western Australia and South Australia, but down in Queensland, and crucially down in New South Wales which will host a State Election this weekend.
ANZ and Roy Morgan said it was an increase in the number of Australians who say now is a ‘bad time to buy’ major household items that drove the weekly decline.
When it comes to buying intentions, 18% (down 1ppt) of Australians say now is a ‘good time to buy’ major household items, while 55% (up 2ppts) say now is a ‘bad time to buy’. ANZ and Roy Morgan said this is the highest figure for this indicator for nearly three years, since early April 2020.
Currently, 19% of Australians say their families are ‘better off’ financially than this time last year, compared to 52% that say their families are ‘worse off’ financially.
Looking forward, 30% expect their family to be ‘better off’ financially this time next year, while 37% expect to be ‘worse off’.
6% of Australians expect ‘good times’ for the Australian economy over the next twelve months, compared to 39% (up 1ppt) that expect ‘bad times’.
Australians expecting ‘good times’ for the economy over the next five years has risen by 2ppts to 13%, compared to 21% (up 1ppt) expecting ‘bad times’. Roy Morgan and ANZ said this is the highest figure for this indicator so far this year.
ANZ senior economist Adelaide Timbrell said consumer confidence remains at very low levels.
“The index, in four of the past five weeks, was among the ten worst results since the COVID outbreak,” Timbrell said. “Confidence among those paying off their mortgages fell 4.3pt and are at their lowest since the beginning of the monetary tightening cycle.
“Confidence among renters and outright homeowners rose a little. The proportion of people saying it is ‘a bad time to buy a major household item’ rose to 55%, its highest since early April 2020.
“Confidence about current finances increased 0.9pts, but was still at its second-lowest level since the initial COVID outbreak in Australia.”