ANZ-Roy Morgan Consumer Confidence slipped 0.4 percentage points to 84.4 this week in the second week of 2024.
Consumer confidence has now spent a record 50 straight weeks below the mark of 85. The index is now 3.3 points below the same week a year ago, but is 6.4 points above the 2023 weekly average of 78.
There were mixed results around the states, with consumer confidence down in the larger states of New South Wales, Victoria and Queensland but up in Western Australia and South Australia.
ANZ senior economist Adelaide Timbrell said the index has stayed higher in 2024 so far than any result between February and December 2023.
He added that while confidence about financial conditions and current economic conditions rose, future economic conditions confidence scaled back following a jump last week.
Now 21% (up 2ppts) say their families are ‘better off’ financially than this time last year compared to a slim majority of 52% (unchanged) that say their families are ‘worse off’.
Looking forward, over a third of Australians (34% - unchanged) expect their family to be ‘better off’ financially this time next year. This is the equal highest figure for this indicator for nearly a year since late January 2023. Meanwhile, 31% (down 1ppt) expect to be ‘worse off’, which is the lowest figure for this indicator for nearly a year since late January 2023.
Positive economic sentiment over the next twelve months remained the same at 11%, compared to a third (31% - down 1ppt) who expect ‘bad times’.
However, net sentiment on the Australian economy in the next five years has dropped 3 percentage points to 12%, compared to 19% (up 1ppt) expecting ‘bad times’.
“Outright and indebted homeowner confidence is still trending up sharply while renter confidence trends sideways,” Timbrell said. “Rising housing prices may be behind this; we expect capital city housing prices to rise 6% through 2024.
“We also expect inflation to reduce to just 3.2% y/y by the end of the year, which will help confidence across all cohorts.”
Buying intentions also drifted slightly, 24% (down 1ppt) of Australians saying now is a ‘good time to buy’ major household items while 47% (up 1ppt) say now is a ‘bad time to buy’.