ANZ-Roy Morgan Consumer Confidence has lifted by 1.4 points to 88.6 this week and is now at its highest since mid-May.
This is the first time consumer confidence has increased for three straight weeks since May – in the three weeks before the Reserve Bank’s meeting in late May after which interest rates were cut.
Consumer confidence is now 9.6 points above the same week a year ago and 2 points above the 2025 weekly average of 86.6.
This week’s small increase was driven by more confidence about personal financial situations and the Australian economy, but buying sentiment dropped after the end of the end of financial year sales.
A fifth of Australians (20 per cent – up 3ppts) say their families are ‘better off’ financially than this time last year compared to 42 per cent (down 3ppts) that say their families are ‘worse off’.
Net views on personal finances over the next year improved slightly this week with 29 per cent (up 1ppt) of respondents expecting their family will be ‘better off’ financially this time next year, while 32 per cent (down 1ppt) expect to be ‘worse off’.
Meanwhile, 11 per cent (unchanged) of Australians expect ‘good times’ for the Australian economy over the next twelve months compared to over a quarter (27 per cent – down 2ppts) that expect ‘bad times’.
Net sentiment regarding the Australian economy in the longer-term improved marginally this week with 14 per cent (unchanged) of Australians expecting ‘good times’ for the economy over the next five years compared to 21 per cent (down 3ppts) expecting ‘bad times’.
However, buying intentions dropped this week after the finish of the EOFY sales, with a quarter of respondents (25 per cent – down 3ppts) saying now is a ‘good time to buy’ major household items compared to 34 per cent (up 3ppts) that say now is a ‘bad time to buy major household items’.
ANZ economist Sophia Angala said the buying intentions subindex is the only one to see a decline last week.
“Confidence in both the financial and economic outlook strengthened, possibly supported by the prospect of an RBA rate cut at its July meeting,” Angala said. “We expect 25bp rate cuts by the RBA each in July and August, given a soft consumer sector as suggested by recent momentum in retail sales and lingering US trade policy uncertainty.”
An analysis by state shows mixed results with consumer confidence up in Victoria, Western Australia and South Australia, but down in New South Wales and Queensland.