ANZ-Roy Morgan consumer confidence has remained at 84.4 this week, with analysts predicting this could change with imminent announcements around cost-of-living relief.
Consumer confidence has now spent a record 51 straight weeks below the mark of 85, and is now 1.5 points below the same week a year ago. However, the index is 6.4 points above the 2023 weekly average of 78.
ANZ senior economist Adelaide Timbrell said consumer confidence is still running higher than any time between February and December 2023.
“Announcements around cost-of-living relief in the coming days and weeks may impact financial confidence, while inflation data next week may provide some clarity on the future of interest rates and the economy,” Timbrell said. “We expect the inflation data to support another RBA hold in February, which could buoy confidence among indebted homeowners.”
Just over a fifth of Australians (21% - unchanged) now say their families are ‘better off’ financially than this time last year compared to 48% (down 4ppts) that say their families are ‘worse off’.
Looking forward, 34% (unchanged) expect their family to be ‘better off’ financially this time next year while 31% (unchanged) expect to be ‘worse off’. Both the former and the latter are the equal highest and lowest respectively for nearly a year since late January 2023.
Over the next twelve months, 10% (down 1ppt) of Australians expect ‘good times’ for the Australian economy over the next twelve months compared to a third (33% - up 2ppts) that expect ‘bad times’.
In the longer term, 12% (unchanged) of Australians are expecting ‘good times’ for the economy over the next five years compared to a fifth (20% - up 1ppt) expecting ‘bad times’.
Buying intentions were virtually unchanged this week with 25% (up 1ppt) of Australians saying now is a ‘good time to buy’ major household items while 48% (up 1ppt) say now is a ‘bad time to buy’.