ANZ-Roy Morgan Consumer Confidence dropped 1.3 points to 89.3 over the last week ahead of the Reserve Bank meeting on interest rates on Tuesday.
Consumer confidence is now 5.4 points above the same week a year ago and 2.5 points above the 2025 weekly average of 86.8.
“While ANZ-Roy Morgan Australian Consumer Confidence recorded a small fall last week, on a four-week moving average basis the series is at its highest level in more than three years,” ANZ economist Madeline Dunk said.
“Over the past month, confidence has risen 2.8pts, driven by a 6.5pts lift in household confidence in the economic outlook over the coming year. There has also been a 4.1pts improvement in how households are feeling about their finances compared to last year.”
Dunk added that there are signs the gradual lift in confidence is flowing through into household spending, saying recent data is looking robust.
“Rate cuts, falling inflation and a continual improvement in real household incomes should all support consumer confidence.”
Dunk and her team expect the cash rate to be cut again in November.
An analysis by state shows mixed results, with consumer confidence up in New South Wales, Victoria and Western Australia, but down in Queensland and South Australia.
Driving consumer confidence lower this week was a slight softening in confidence about personal financial situations as well as a modest fall in perceptions of current buying intentions.
Just over a fifth of Australians (21 per cent – down 1ppt) say their families are ‘better off’ financially than this time last year compared to 40 per cent (unchanged) that say their families are ‘worse off’.
Nearly 3 in 10 Australians (28 per cent – unchanged) expect their family will be ‘better off’ financially this time next year, while a rising 30 per cent (up 2ppts) expect to be ‘worse off’.
Meanwhile, 13 per cent (up 1ppt) of Australians expect ‘good times’ for the Australian economy over the next twelve months compared to 26 per cent (down 1ppt) that expect ‘bad times’.
Net views regarding the Australian economy in the longer-term deteriorated slightly this week with 13 per cent (down 1ppt) of Australians expecting ‘good times’ for the economy over the next five years compared to just under a quarter, 24 per cent (up 2ppts) expecting ‘bad times’.
And nearly a quarter of Australians (24 per cent – down 2ppts) say now is a ‘good time to buy’ major household items compared to 33 per cent (up 1ppt) that say now is a ‘bad time to buy major household items’.