Australian consumer confidence has fallen by 3.4 points to 86 this week, according to ANZ Bank and Roy Morgan.
This is the first full week of surveying Australians after the Reserve Bank cut interest rates by 25 basis points to 3.6 per cent.
Consumer Confidence is now 3.4 points above the same week a year ago and 0.8pts below the 2025 weekly average of 86.8.
ANZ economist Madeline Dunk confirmed all subindices across the index moved backwards, causing confidence to hit a two-month low.
“Household confidence in the economy also fell to its lowest level since June. The time to buy a major household item subindex is at its softest since May, which is likely seasonal, as May is when end-of-financial year sales events started ramping up,” Dunk said.
Now, just over a fifth of Australians (21 per cent – down 3ppts) 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’.
Views on personal finances over the next year weakened with 28 per cent (down 1ppt) of respondents expecting their family will be ‘better off’ financially this time next year, while a rising 33 per cent (up 1ppt) expect to be ‘worse off’.
Net sentiment regarding the economy over the next year was weaker as well, with 12 per cent (unchanged) of Australians expecting ‘good times’ for the Australian economy over the next twelve months compared to 29 per cent (up 4ppts) that expect ‘bad times’.
Over one in ten (13 per cent – down 1ppt) of Australians expect ‘good times’ for the economy over the next five years compared to 26 per cent (up 3ppts) expecting ‘bad times’.
Meanwhile, under a quarter of respondents (22 per cent – down 1ppt) saying now is a ‘good time to buy’ major household items compared to 35 per cent (up 2ppts) that say now is a ‘bad time to buy major household items’.
“Despite last week’s decline, we expect the upward trend in consumer confidence to resume,” Dunk continued. “On a four-week moving average basis, confidence is still at its second highest level in more than three years. Household balance sheets look strong and will be supported by rising real household disposable incomes, disinflation and a strong labour market. This should flow through to confidence.”
An analysis by state shows mixed results with consumer confidence up in New South Wales, but down in every other State including Victoria, Queensland, Western Australia and South Australia.