ANZ-Roy Morgan Consumer Confidence has lifted by 1.6pts to 78.2 this week, while still remaining below the mark of 80 for the fifth week in a row.
ANZ and Roy Morgan said this is the first time it has remained below 80 since the index commenced weekly reviews in October 2008.
The last time consumer confidence spent at least five weeks under 80 was during the 1990-91 recession when the index was conducted on a monthly basis.
Consumer confidence is now 15.2pts below the same week a year ago (March 28-April 3, 2022 - 93.4) and 3.5pts below the 2023 weekly average of 81.4.
The rise comes as the Reserve Bank of Australia (RBA) paused movement in interest rates this month, which had been speculated on over the last week.
Consumer confidence was mixed around the country for the week. New South Wales saw a significant increase following its State Election and was also up in Western Australia and South Australia. In contrast, consumer confidence was down in Victoria and Queensland.
Improving sentiment around the performance of the Australian economy over the next year and five years are cited as reasons for the rise in consumer confidence.
Now 19% of Australians (down 2ppts) say their families are ‘better off’ financially than this time last year compared to 52% (unchanged) that say their families are ‘worse off’ financially.
Looking ahead, 32% (up 2ppts) expect their family to be ‘better off’ financially this time next year while 35% (down 1ppt)expect to be ‘worse off’.
Moreover, 6% (up 1ppt) of Australians expect ‘good times’ for the Australian economy over the next twelve months compared to 36% (down 4ppts) that expect ‘bad times’.
And 12% (up 2ppts) of Australians expecting ‘good times’ for the economy over the next five years compared to 20% (down 1ppt) expecting ‘bad times’.
When it comes to buying intentions, 18% (down 1ppt) of Australians say now is a ‘good time to buy’ major household items while 53% (unchanged) say now is a ‘bad time to buy’.
“Confidence among those paying off their mortgage fell 2.1pts to 70.5 ahead of the April RBA meeting, bringing mortgaged homeowner confidence to 7.2pts below average confidence for all cohorts,” ANZ senior economist Adelaide Timbrell said.
“Confidence in financial conditions, particularly current financial conditions, is now trending lower than it was during the initial COVID outbreak, as ongoing inflation and the rapid rise in the cash rate bites household budgets.
“Confidence that ‘it is a good time to buy a major household item’ declined 1.4pts and was below 70 for an eighth straight week.”