ANZ-Roy Morgan Consumer Confidence increased 0.5 points to 88.8 in the week before the Reserve Bank (RBA) meeting this afternoon to consider interest rates.
According to Roy Morgan and ANZ bank, the RBA is widely expected to reduce interest rates today to below 4 per cent.
Consumer confidence is now 6.8 points above the same week a year ago and 2.4pts above the 2025 weekly average of 86.4.
A look across the index shows mixed results with the biggest driver of the increase being the positive improvement in buying sentiment – now at its highest net rating so far this year.
Over a fifth of Australians (23 per cent - up 3ppts) say now is a ‘good time to buy’ major household items compared to 37 per cent (up 1ppt) that say now is a ‘bad time to buy major household items’.
Meanwhile, 18 per cent (unchanged) say their families are ‘better off’ financially than this time last year compared to 41 per cent (down 2ppts) that say their families are ‘worse off’.
Net views on personal finances over the next year dropped slightly this week with 30 per cent (unchanged) of respondents expecting their family will be ‘better off’ financially this time next year, while 30 per cent (up 2ppts) expect to be ‘worse off’.
Views on the economy over the next year were one of the biggest drivers of the weekly increase with 14 per cent (up 1ppt) expecting ‘good times’ for the Australian economy over the next twelve months compared to 24 per cent (down 2ppts) that expect ‘bad times’. Both figures are equally the highest and lowest figures for their respective indicator since February 2022.
However, net sentiment regarding the Australian economy in the longer-term deteriorated this week with 14 per cent (unchanged) of Australians expecting ‘good times’ for the economy over the next five years compared to nearly a quarter (23 per cent - up 3ppts) expecting ‘bad times’.
“Across the subindices, household economic confidence in the next year recorded the largest increase, and on a 4-week moving average basis, this subindex is now at its highest level since early May 2022, prior to the beginning of the RBA’s hiking cycle,” ANZ economist Sophia Angala said.
“The lift in this series may be supported by the de-escalation in US-China trade tensions last week. Domestic data pointing to solid wage growth in Q1 and a resilient labour market may also be drivers.
“We continue to expect a 25bp cut by the RBA at its meeting this week. Rate cuts flowing through to household disposable incomes should support upward momentum in ANZ-Roy Morgan Consumer Confidence this year but may be softened by global uncertainty.”
An analysis by state shows mixed results with consumer confidence rising in Queensland and South Australia, but down slightly in New South Wales, Victoria and Western Australia.