ANZ-Roy Morgan Consumer Confidence was virtually unchanged at 89.4 this week after the Reserve Bank cut interest rates by 25 basis points to 3.6 per cent.
Despite the small 0.1 per cent lift this week, the series continues to move upward on a four-week moving average basis, and is again at its highest level since June 2022.
ANZ economist Madeline Dunk said confidence rose for renters and those paying off a mortgage but declined for households who own their home outright. This comes as confidence remains higher for homeowners and lowest for renters.
Consumer confidence of homeowners dropped by 2.6 points this week. The consumer confidence of this group has dropped in all three weeks that the Reserve Bank has cut interest rates so far this year by an average of 2.6 points.
In contrast, confidence among those with a mortgage increased by 2.1 points this week. The consumer confidence of this group has increased in all three weeks that the Reserve Bank has cut interest rates so far this year by an average of 5 points.
“On a four-week moving average basis, confidence amongst mortgage holders was at its second highest level since May 2022 – which was when the RBA first started increasing the cash rate,” Dunk said.
“ANZ Research expects the RBA to cut rates 25bp in November. We think the RBA will then keep the cash rate at 3.35 per cent for an extended period.”
Following the slight rise this week, consumer confidence is now 6.4 points above the same week a year ago and 2.6 points above the 2025 weekly average of 86.8.
Almost a quarter of Australians (24 per cent – up 3ppts) say their families are ‘better off’ financially than this time last year, which is the the highest figure for this indicator so far this year. Those who say their families are worse off financially this year make up 42 per cent – up 2ppts.
Net views on personal finances over the next year weakened with 29 per cent (up 1ppt) of respondents expecting their family will be ‘better off’ financially this time next year, while a rising 32 per cent (up 2ppts) expect to be ‘worse off’.
Over one in ten (12 per cent – down 1ppt) of Australians are expecting ‘good times’ for the Australian economy over the next twelve months compared to a quarter (25 per cent – down 1ppt) that expect ‘bad times’.
Meanwhile, 14 per cent (up 1ppt) of Australians are expecting ‘good times’ for the economy over the next five years compared to 23 per cent (down 1ppt) expecting ‘bad times’.
Net buying intentions were virtually unchanged this week with under a quarter of respondents (23 per cent – down 1ppt) saying now is a ‘good time to buy’ major household items compared to 33 per cent (unchanged) that say now is a ‘bad time to buy major household items’.
An analysis by state shows mixed results with consumer confidence up in Queensland and South Australia, but down in New South Wales, Victoria and Western Australia – essentially a reversal of last week’s results and movements.