The latest ANZ-Roy Morgan Consumer Confidence Index has recorded a slight decrease, reflecting Australians’ growing concerns about their financial situations and the national economy’s future.
The ANZ-Roy Morgan Consumer Confidence Index fell by 0.9 points this week to 81.9, marking a record 62 consecutive weeks below the 85-point threshold. Despite the decline, the index remains 2.6 points higher than the same week last year and just one point below the 2024 weekly average of 82.9.
“ANZ-Roy Morgan Australian Consumer Confidence declined for a second consecutive week,” said Madeline Dunk (pictured above), ANZ economist. “The current economic environment has kept consumer confidence below 85pts for a record 62 weeks – 23 weeks longer than during the 1990s recession.”
Variations were observed across the states, with confidence falling in Victoria but rising in New South Wales, Queensland, South Australia, and Western Australia.
The drop in consumer confidence this week is attributed to decreased optimism regarding personal financial situations and the broader Australian economy.
Only 19% of Australians feel their families are financially better off than last year, while 53% feel worse off. Expectations for personal financial improvement over the next year have also declined, with only 31% anticipating better financial conditions.
Concerning the economy, just 10% of Australians are optimistic about the economic outlook over the next 12 months, with 31% expecting challenging times ahead. The long-term economic sentiment has similarly worsened, with only 12% of Australians feeling positive about the next five years.
The sentiment towards purchasing major household items remains cautious, with 21% of Australians believing it's a good time to buy, while 47% consider it a bad time.
Dunk highlighted the impact of rising inflation expectations, which have reached their highest level for the year, contributing to the gloomy economic and financial outlook.
“This is the first time since November 2022 (when inflation expectations peaked at 6.8%) that inflation expectations have increased for three weeks in a row,” she said. “Higher petrol prices may be contributing to this rise in inflation expectations.”
Read the ANZ-Roy Morgan Consumer Confidence report here. Compare the latest results with the previous week’s here.
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