Australian consumer confidence has remained stubbornly low in the lead-up to the Reserve Bank of Australia’s meeting this week on interest rates.
ANZ-Roy Morgan Consumer Confidence nudged up slightly by 0.3 points to 75, as many economists correctly predicted a hold on the cash rate at 4.35 per cent, which the RBA confirmed yesterday.
Consumer confidence is 14.3 points lower than a year ago, but sits 3 points above the 2026 weekly average of 72.
The only meaningful change across the subindices was slightly fewer people concerned about the Australian economy’s performance going forward, which was offset by more people saying now is a ‘bad time to buy’ major household items.
Now 16 per cent (unchanged) 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’.
Looking ahead, 23 per cent (unchanged) of respondents now expect their family will be ‘better off’ financially this time next year, while 39 per cent (up 1ppt) expect to be ‘worse off’.
Net sentiment regarding the economy over the next year shifted slightly, with 7 per cent (unchanged) of Australians expecting ‘good times’ compared to 37 per cent (down 4ppts) who expect ‘bad times’.
Australians are less worried about the economy’s performance over the next five years this week, with 8 per cent (down 1ppt) of Australians expecting ‘good times’ for the economy over the next five years compared to just over a quarter (26 per cent – down 3ppts) expecting ‘bad times’.
As for buying intentions, 19 per cent (up 1ppt) of respondents said now is a ‘good time to buy’ major household items compared to 44 per cent (up 4ppts) that say now is a ‘bad time to buy major household items’.
ANZ economist Sophia Angala said the drops around household outlook on personal finances may have been driven by a pick-up in petrol prices.
“Across the housing cohorts, confidence declined for households paying off a mortgage but lifted for renters and outright homeowners,” Angala said.
An analysis by state shows mixed results, with increases for consumer confidence in Victoria – after former Premier Jacinta Allan was forced out and replaced with new leader Ben Carroll – as well as Western Australia and South Australia, while down in New South Wales and Queensland.