ANZ-Roy Morgan Consumer Confidence has lifted slightly by 1 point to 84 this week, but not enough to offset recent lows.
Confidence is now down 3.5 points on a year ago, and is 2.6 points below the 2025 weekly average of 86.6
Driving the index higher this week was higher net confidence about prospects for the Australian economy over the short and long-term.
Just under a fifth of Australians (19 per cent – down 1ppt) say their families are ‘better off’ financially than this time last year compared to a plurality of 43 per cent (down 2ppts) that say their families are ‘worse off’.
Views on personal finances over the next year were unchanged with 25 per cent of respondents expecting their family will be ‘better off’ financially this time next year, while 32 per cent expect to be ‘worse off’.
Net sentiment regarding the economy over the next year improved slightly this week with just 8 per cent (down 1ppt) of Australians expecting ‘good times’ for the Australian economy over the next twelve months compared to 30 per cent (down 2ppts) that expect ‘bad times’.
In the longer term, confidence in the economy grew stronger, with 10 per cent of Australians (unchanged) expecting ‘good times’ for the economy over the next five years compared to a quarter (25 per cent – down 3ppts) expecting ‘bad times’.
This has swung back from last week’s multi-decade low.
Meanwhile, buying intentions were virtually unchanged this week with 22 per cent (down 1ppt) of respondents saying now is a ‘good time to buy’ major household items compared to 34 per cent (down 1ppt) that say now is a ‘bad time to buy major household items’.
ANZ economist Sophia Angala said despite the slight lift this year, the index’s four-week moving average is hovering around a 12-month low.
“Last week’s rise was driven by improving confidence in economic conditions, noting this was supported by a bounce in the five-year economic outlook, after a 15-year low last week,” Angala said.
“In an interview last week, RBA Assistant Governor Hunter noted that consumer confidence is at a ‘relatively subdued’ level. We see solid income growth, rising housing prices and a final RBA rate cut in February all supporting upward momentum in the consumer sector in the coming months.”
An analysis by state shows mixed results with increases in New South Wales and South Australia, down in Western Australia, and virtually unchanged in Victoria and Queensland.