ANZ-Roy Morgan Consumer Confidence was up 0.9pts to 86.8 this week, the third increase out of four weeks so far this year. However, consumer confidence is still 15pts below the same week a year ago, January 24-30, 2022 (101.8).
Consumer confidence is now 1.9pts below the 2022 weekly average of 88.7.
Slightly more positive sentiment regarding whether now is a ‘good/bad time to buy major household items drove this week’s small increase, according to ANZ and Roy Morgan.
Less than a quarter of Australians say their families are ‘better off’ financially than this time last year compared to 44% (down 1ppt) that say their families are ‘worse off’ financially.
Looking forward, over a third of Australians expect their family to be ‘better off’ financially this time next year while just under a third, 30% (down 1ppt), expect to be ‘worse off’.
Of concern according to ANZ and Roy Morgan is that only 7% (down 2ppts) of Australians expect ‘good times’ for the Australian economy over the next twelve months compared to fewer than a third, 30% (unchanged), that expect ‘bad times’.
Over the next five years, 14% of Australians are expecting ‘good times’ for the economy, compared to 17% (down 2ppts) expecting ‘bad times’.
Around Australia, consumer confidence was mixed with the measure up in New South Wales, Queensland and Western Australia, but down in Victoria and South Australia.
ANZ senior economist Adelaide Timbrell said confidence has remained relatively stable over January, within a band of 1.8 points.
“While confidence remains well below the neutral level of 100, its four-week average is at its highest level since June 2022,” Timbrell said. “Household inflation expectations dropped 0.6pts despite the news last week that annual inflation hit a 32-year high in Q4 2022.
“This is a signal that household inflation expectations remain somewhat anchored despite accelerating inflation through 2022.”