ANZ-Roy Morgan Consumer Confidence was virtually unchanged this week at 81.7, and is in line to reach a 60-week low next week if the index refuses to budge above the mark of 85.
Consumer Confidence is 5.2 points above the same week a year ago, but 1.3 points below the 2024 weekly average of 83.0.
The index was up in New South Wales and Queensland, but down in Victoria, Western Australia and South Australia.
Now under a fifth of Australians (18 per cent - down 1ppt) say their families are ‘better off’ financially than this time last year - the lowest figure for this indicator so far this year - compared to a majority of 52 per cent (down 1ppt) that say their families are ‘worse off’.
Views on personal finances over the next year are balanced with 32 per cent of Australians (down 1 ppt) expecting their family to be ‘better off’ financially this time next year, with another 32 per cent (up 2ppts) expecting to be ‘worse off’.
Just 10 per cent of Australians (down 1ppt) expect ‘good times’ for the Australian economy over the next twelve months compared to 31 per cent (unchanged) expecting ‘bad times’.
Net sentiment regarding the Australian economy in the longer term improved slightly this week with 12 per cent (up 1ppt) of Australians expecting ‘good times’ for the economy over the next five years compared to 20 per cent (unchanged) expecting ‘bad times’.
Buying intentions were unchanged this week with 20 per cent of Australians saying now is a ‘good time to buy’ major household items while 49 per cent say now is a ‘bad time to buy’.
ANZ economist Madeline Dunk said the non-movement of the index this week comes as inflation expectations fell to its lowest level since February 2022.
Inflation expectations dropped 0.1 per cent to 4.8 per cent. Australians now expect annual inflation to be 4.8% over the next two years.
“This is likely to be welcomed by the RBA, given the board’s focus on inflation expectations remaining anchored,” Dunk said.
The RBA held interest rates steady at 4.35 per cent this month, with retailers calling for cuts sooner rather than later.
“Confidence amongst households paying off a mortgage declined 6.4pts to its lowest level this year. Confidence amongst renters remains weak, declining 1.8pts.
“The situation is a little better for those who own their home outright, with confidence rising 5.5pts.”