The Albanese Government’s move to cut the fuel excise by over 25 cents per litre last week has managed to halt a recent plunge in consumer confidence.
ANZ-Roy Morgan Consumer Confidence nudged up by 3.5 points to 62.3 this week, a reversal from a month-long slide amid the US-Iran-Israel war. Consumer confidence slid from its most recent peak of 80.2 in late February to 58.8 at the end of March – an all-time record low.
The recent swing-back to 62.3 is now the second-lowest level in the index stretching back over 50 years since 1972. It is currently 24.5 points lower than a year ago, and 12 points below the 2026 weekly average of 74.3.
Driving this week’s increase was more confidence about personal finances compared to a year ago, and looking forward, and more confidence about the Australian economy’s performance going forward.
More than one-in-eight Australians (13 per cent – up 1ppt) say their families are ‘better off’ financially than this time last year compared to 60 per cent (down 1ppt) that say their families are ‘worse off’.
Just under one in five (19 per cent – up 2ppts) respondents expect their family will be ‘better off’ financially this time next year, while 47 per cent (down 4ppts) expect to be ‘worse off’.
Net sentiment regarding the economy over the next year improved this week with 5 per cent (up 1ppt) of Australians expecting ‘good times’ compared to over half (54 per cent – down 2ppts) that expect ‘bad times’.
In the longer-term, 6 per cent (up 2ppts) of Australians expect ‘good times’ for the economy over the next five years compared to 32 per cent (down 2ppts) expecting ‘bad times’.
As for buying intentions, 16 per cent (up 3ppts) of respondents say now is a ‘good time to buy’ major household items compared to 55 per cent (up 1ppt) that say now is a ‘bad time to buy major household items’.
ANZ economist Sophia Angala said all subindices strengthened, while Roy Morgan’s inflation expectations eased slightly, too. She said this occurred in the same week that the three-month reduction in the fuel excise took effect and the release of the RBA’s March Monetary Policy Board meeting minutes.
“In the minutes, the Board noted there were some downside risks to household consumption in Q1 2026, as higher petrol prices and weak consumer confidence could weigh on spending,” Angala said. “We expect household consumption growth to ease from 2.4 per cent in 2025 to 1.1 per cent in 2026.”
Across the country, consumer confidence improved in all five mainland states this week.