ANZ-Roy Morgan Consumer Confidence has dropped by 3.4 points to 85.9 this week, and is now 1 percentage point below the 2025 weekly average of 86.9.
Despite this, consumer confidence is now 1.8 points above the same week a year ago.
ANZ economist Sophia Angala said consumer confidence has eased to its lowest level since mid June.
“The decline was broad-based and included the weakest medium-term economic confidence in the last 15 years,” Angala said. “Short-term economic confidence also fell to its fifth weakest result in 2025 so far (of 37 results this year).
“Recession concerns in the US following a deterioration in labour market data may have supported this. However, local forward-looking indicators such as ANZ-Indeed Job Ads point to a resilient labour market and economy in Australia.”
Angala added that renter confidence – on a four-week moving average – has been on an uptrend and hit its third-strongest result since early 2023 this week, while outright owner and mortgage holder confidence have both dropped sharply in the last few weeks.
The main driver of this week’s increase in consumer confidence was rising concern about personal finances over the next year which dropped by 9 percentage points from a week ago.
Just over a fifth of Australians (22 per cent - unchanged) say their families are ‘better off’ financially than this time last year compared to 40 per cent (unchanged) that say their families are ‘worse off’.
Net views on personal finances over the next year decreased with 26 per cent (down 3ppts) of respondents expecting their family will be ‘better off’ financially this time next year while 33 per cent (up 6ppts) expect to be ‘worse off’. This is a reversal of last week’s boom here.
One-in-ten Australians (10 per cent – down 1ppt) are expecting ‘good times’ for the Australian economy over the next twelve months compared to 29 per cent (up 1ppt) that expect ‘bad times’.
Sentiment regarding the Australian economy in the longer-term also weakened, with 10 per cent (down 3ppts) of Australians expecting ‘good times’ for the economy over the next five years compared to 28 per cent (up 3ppts) expecting ‘bad times’.
As for net buying intentions, 24 per cent (down 2ppts) of Australians this week are saying now is a ‘good time to buy’ major household items compared to 32 per cent (down 3ppts) that say now is a ‘bad time to buy major household items’.
An analysis by state shows mixed results, with consumer confidence down in Victoria, Western Australia and South Australia, but unchanged in Queensland and New South Wales.