ANZ-Roy Morgan Consumer Confidence has fallen by 3.7 points to 73.4 this week driven by falling confidence about personal finances and the Australian economy over the next year.
This follows the recent conflicts between the United States and Iran over the last two weeks.
Consumer confidence is now a large 13.5 points lower than a year ago, and is 5.8 points below the 2026 weekly average of 79.2.
ANZ economist Madeline Dunk said consumer confidence is now at its weakest level since July 2023.
“Most subindices declined, with the sharpest fall seen in households’ confidence about their financial conditions over the coming year. That subindex remains at its lowest level on record,” she said.
“Rising geopolitical uncertainty is likely to have played a role. Since the conflict in the Middle East escalated last week, WTI oil futures are up roughly 30 per cent. And inflation expectations recorded their largest weekly rise since we began measuring the series in 2010.
“This takes inflation expectations to its highest level since November 2022. RBA Governor Bullock noted last week that the board will be watching inflation expectations closely to ensure they remain anchored.”
Driving this week’s decrease was less confidence about the Australian economy over the next year, and less confidence about personal financial situations over the next year.
Fewer than one-in-five Australians (18 per cent – up 1ppt) say their families are ‘better off’ financially than this time last year compared to 47 per cent (up 2ppts) that say their families are ‘worse off’.
Just 20 per cent (down 1ppt) of respondents now expect their family will be ‘better off’ financially this time next year, while 43 per cent (up 6ppts) expect to be ‘worse off’.
Net sentiment regarding the economy over the next year deteriorated significantly again this week with only 6 per cent (down 1ppt) of Australians expecting ‘good times’ for the Australian economy over the next twelve months compared to 42 per cent (up 5ppts) that expect ‘bad times’.
Net views regarding the Australian economy over the next five years were unchanged this week with just 9 per cent (up 1ppt) of Australians expecting ‘good times’ for the economy over the next five years compared to 29 per cent (up 1ppt) expecting ‘bad times’.
Meanwhile, 18 per cent (down 1ppt) of respondents say now is a ‘good time to buy’ major household items compared to 43 per cent (up 3ppts) that say now is a ‘bad time to buy major household items’.
An analysis by state shows consumer confidence falling in most states including in Victoria, Queensland, South Australia, and Western Australia, but up in New South Wales.