ANZ-Roy Morgan Consumer Confidence dropped 0.6 points to 86.4 in the week after the Reserve Bank (RBA) cut interest rates by 25 basis points to 3.85 per cent.
Consumer confidence is now 5.9 points above the same week a year ago, and in line with the 2025 weekly average of 86.5.
ANZ economist Sophia Angala said the fall was largely driven by lower confidence in the 12-month financial outlook, but noted that economic confidence rose slightly.
“Weekly inflation expectations lifted to 5 per cent last week, with inflation data last week pointing to a stalling in disinflation,” Angala said.
“Confidence across the housing cohorts has converged. Confidence of outright homeowners has fallen, while mortgage holder confidence has risen likely due to the fall in interest rates in February and May. Confidence of mortgage holders at its highest level in three years.”
A look across the index shows the driver of this week’s fall was less confidence about personal finances over the next 12 months, with a net movement of 3 percentage points in the wrong direction.
Just under a fifth of Australians (18 per cent - unchanged) say their families are ‘better off’ financially than this time last year compared to 42 per cent (unchanged) that say their families are ‘worse off’.
Meanwhile, just over a quarter (26 per cent - down 2ppts) of respondents now expect their family will be ‘better off’ financially this time next year, while 31 per cent (up 1ppt) expect to be ‘worse off’.
Views on the economy over the next year improved marginally with 14 per cent of Australians (up 1ppt) expecting ‘good times’ for the local economy over the next twelve months compared to 28 per cent (down 1ppt) that expect ‘bad times’.
Net sentiment regarding the Australian economy in the longer-term deteriorated slightly this week with 14 per cent (up 1ppt) of Australians expecting ‘good times’ for the economy over the next five years compared to 26 per cent (up 2ppts) expecting ‘bad times’. This is the highest figure for this indicator for over five years since early April 2020 in the early days of the COVID-19 pandemic.
Net buying intentions were virtually unchanged this week with 23 per cent (unchanged) of Australians saying now is a ‘good time to buy’ major household items compared to 36 per cent (up 1ppt) that say now is a ‘bad time to buy major household items’.
Across the states, consumer confidence dropped in New South Wales and Western Australia, but was up slightly in Victoria, Queensland and South Australia.