Consumers are feeling ever-so-slightly less optimistic about their personal finances this week, which is keeping confidence at very subdued levels.
ANZ-Roy Morgan Consumer Confidence was virtually unchanged at 66.1, down just 0.3 points this week, but still the eighth lowest consumer confidence reading of all time.
Consumer confidence is 20.9 points lower than a year ago and 5.2 points below the 2026 weekly average of 71.3.
The index in mid-May was the eighth lowest reading in its history stretching back over 50 years since 1973.
Although the overall figure was unchanged, there was weakness in the index related to personal finances, which was largely offset by more people saying it’s a ‘good time to buy’ major household items.
ANZ economist Sophia Angala said the slight increase in buying intentions, and a slight bump up in confidence in economic conditions, may have been driven by news of the prospect of a US-Iran deal.
But what’s driving down confidence around personal finances is likely continued inflation struggles. Angala added that Roy Morgan’s weekly inflation expectations ticked up ahead of April CPI data this week, which she said will be key to revealing the speed and extent of which higher input costs (such as fuel, fertiliser or plastics) are flowing through to the broader inflation basket.
“We expect headline inflation to have risen 0.5 per cent m/m in April,” Angala said.
Across in subindices, just over one-in-ten Australians (13 per cent - down 2ppts) now say their families are ‘better off’ financially than this time last year compared to a majority of 56 per cent (up 1ppt) that say their families are ‘worse off’.
Net views on personal finances over the next year were slightly weaker this week with 20 per cent (down 1ppt) of respondents expecting their family will be ‘better off’ financially this time next year, while 47 per cent (up 1ppt) expect to be ‘worse off’.
Regarding the economy over the next year, just 5 per cent (up 1ppt) of Australians expect ‘good times’ compared to 47 per cent (up 1ppt) that expect ‘bad times’.
Views regarding the Australian economy over the next five years were unchanged this week with 7 per cent (unchanged) of Australians expecting ‘good times’ for the economy over the next five years compared to 32 per cent (unchanged) expecting ‘bad times’.
As for buying intentions, 15 per cent (up 3ppts) of respondents say now is a ‘good time to buy’ major household items compared to 48 per cent (down 1ppt) that say now is a ‘bad time to buy major household items’.
An analysis by state shows consumer confidence increased in New South Wales, and Queensland, but decreased in Victoria, Western Australia, and South Australia.