Australian consumer confidence has nudged up out of a recent record low this year, but is still far down in the trenches compared to last year.
ANZ-Roy Morgan Consumer Confidence increased 2 points to 73.9 in mid-September, which is 12 points below the same time last year, but 1.5 points above the 2026 weekly average of 72.4.
According to ANZ and Roy Morgan, the index was driven higher this week amid increasing confidence about people’s personal finances, especially when compared to a year ago.
Now 17 per cent (up 3ppts) of Australians say their families are ‘better off’ financially than this time last year, compared to 51 per cent (down 3ppts) that say their families are ‘worse off’.
Views on personal finances over the next year were slightly stronger this week, with 23 per cent (up 1ppt) of respondents expecting their family will be ‘better off’ financially this time next year, while 40 per cent (down 1ppt) expect to be ‘worse off’.
Net sentiment regarding the economy over the next year was virtually unchanged, with 8 per cent (up 3ppts) of Australians expecting ‘good times’ compared to 41 per cent (up 2ppts) who expect ‘bad times’.
In the longer-term, 8 per cent (up 1ppt) of Australians are now expecting ‘good times’ for the economy over the next five years compared to nearly a third (31 per cent - up 2ppts) expecting ‘bad times’.
Meanwhile, net buying intentions were virtually unchanged this week, with 19 per cent (up 3ppts) of respondents saying now is a ‘good time to buy’ major household items compared to 43 per cent (up 2ppts) that say now is a ‘bad time to buy major household items’.
ANZ economist Sophia Angala said the rise this week partially reversed last week’s fall, but remains well-below the neutral level of 100.
“The lift was driven by improved confidence in personal finances, though financial confidence remains historically weak, likely reflecting inflationary pressures, global uncertainty and higher rates,” Angala said.
Angala pointed out commentary by the Reserve Bank of Australia’s deputy governor, Andrew Hauser, who noted that the bank is alert to upside inflation risks and added that the board is willing to raise rates further if required.
“This may have driven the decline in confidence across mortgage holders last week, while confidence increased across outright homeowners and renters,” Angala said. “We expect the RBA to increase the cash rate by 25bp in November.”
An analysis by state shows confidence increasing in New South Wales, Victoria, and South Australia, but down in Queensland for a second straight week, and unchanged in Western Australia.