ANZ-Roy Morgan Consumer Confidence has slipped in the last week amid the eruption of conflict between Israel and Iran.
According to ANZ and Roy Morgan, this conflict could threaten global economic stability, particularly with the price of oil.
Confidence among consumers fell 1.3 points to 85.4, which is 5.1 points above the same week a year ago, and now slightly below the 2025 weekly average of 86.2.
A look across the index shows gentle declines in net sentiment across all five indicators, with the largest driver of the fall being increasing concern about personal finances over the next 12 months.
A fifth of Australians (20 per cent - unchanged) say their families are ‘better off’ financially than this time last year, compared to 43 per cent (up 1ppt) that say their families are ‘worse off’.
Net views on personal finances over the next year declined this week, despite more people expecting to be ‘better off’ this time next year. Now 27 per cent (up 2ppts) of respondents expect their family will be ‘better off’ financially this time next year – rising off a five-year low – while 34 per cent (up 4ppts) expect to be ‘worse off’. The latter is the highest figure for this indicator so far this year.
Views on the economy over the next year were down slightly this week, with just 11 per cent (down 1ppt) of Australians expecting ‘good times’ for the Australian economy over the next twelve months, compared to 30 per cent (unchanged) that expect ‘bad times’.
Meanwhile, 12 per cent (down 1ppt) of Australians now expect ‘good times’ for the economy over the next five years compared to a quarter (25 per cent - unchanged) expecting ‘bad times’.
Net buying intentions were down this week, with 23 per cent (down 2ppts) of Australians saying now is a ‘good time to buy’ major household items compared to 34 per cent (unchanged) that say now is a ‘bad time to buy major household items’.
ANZ economist Sophia Angala said escalating geopolitical uncertainty may have supported the softer headline result and may also have supported the rise in ‘weekly inflation expectations’ through consumer expectations around increases in oil prices.
“Recent domestic data has been sluggish, including evidence pointing to a soft business sector following closely after the weak GDP print for Q1,” Angala said.
Across the states, consumer confidence was down in New South Wales and Victoria, up in Queensland and South Australia, and unchanged in Western Australia.