ANZ-Roy Morgan Consumer Confidence has hit a three-year high this week.
The index shot up by 3.9 points to 90.6, which is the first time the consumer indicator passed the mark of 90 since May 2022.
Consumer confidence is now 9.3 points above the same week a year ago and 3.9 points above the 2025 weekly average of 86.7.
Driving the index higher this week was more confidence in regards to personal financial situations, both compared to a year ago and looking ahead for the next 12 months.
Over a fifth of Australians (22 per cent – up 2ppts) say their families are ‘better off’ financially than this time last year compared to 40 per cent (down 4ppts) that say their families are ‘worse off’. The latter figure is the lowest it has been for over three years since May 2022.
The biggest improvement was for net views on personal finances over the next year with 28 per cent (up 2ppts) of respondents expecting their family will be ‘better off’ financially this time next year, while 28 per cent (down 6ppts) expect to be ‘worse off’.
Net sentiment regarding the economy over the next year was virtually unchanged this week with just 12 per cent (unchanged) of Australians, expecting ‘good times’ for the Australian economy over the next twelve months compared to over a quarter (27 per cent – down 1ppt) that expect ‘bad times’.
Net views regarding the Australian economy in the longer-term were slightly improved this week with 14 per cent (up 1ppt) of Australians expecting ‘good times’ for the economy over the next five years compared to 22 per cent (down 1ppt) expecting ‘bad times’.
Meanwhile, buying intentions improved marginally this week with just over a quarter of respondents (26 per cent – up 1ppt) saying now is a ‘good time to buy’ major household items compared to 32 per cent (down 1ppt) that say now is a ‘bad time to buy major household items’.
ANZ economist Sophia Angala said confidence in future household finances rose sharply after CPI data last week showed an easing in underlying inflation and raised the likelihood of an RBA rate cut in August.
“We expect the RBA to cut the cash rate by 25bp at its August meeting,” Angala said.
“Despite the data suggesting a sustainable return of inflation to the midpoint of the RBA’s 2–3 per cent target band, ‘Weekly inflation expectations’ rose last week.
“The US administration’s announcement of modified reciprocal tariffs over the weekend of the survey period may have driven the move up, but on a four-week moving average basis inflation expectations have largely moved sideways over the past year.”
An analysis by state shows increases across the board with all five mainland states up this week, led by Victoria, Queensland and Western Australia – all at 90 or above.