The ANZ-Roy Morgan Consumer Confidence Index has experienced a modest increase of 1.2 points to 82.2 this week, continuing a trend that has kept the index below the 85-point optimism threshold for a record 58 weeks.
Although consumer confidence is 5.2 points higher than the same week last year, it remains one point below the average for 2024.
While Western Australia experienced a sharp improvement in consumer confidence, sentiment remained largely unchanged in New South Wales, Victoria, Queensland, and South Australia.
Currently, fewer than one in five Australians, 19% (unchanged), reported their families are financially better off than last year, while a majority, 53% (a decrease of two percentage points), feel their families are worse off.
Looking ahead, optimism about personal finances prevails, with a third of Australians, 33% (unchanged), anticipating their family will be in a better financial position next year, compared to 30% (a decrease of four percentage points) expecting to be worse off.
Economic confidence and purchasing intentions
Just over one in 10 Australians, 11% (unchanged), anticipate positive economic conditions over the next twelve months, whereas nearly a third, 31% (a decrease of one percentage point), expect challenging times.
Additionally, long-term economic outlook has slightly worsened, with 11% (a decrease of one percentage point) hopeful for the economy over the next five years, while 20% (unchanged) foresee difficult conditions.
This week, buying intentions remained largely steady, with 20% (a decrease of one percentage point) of Australians considering it a “good time to buy” major household items, while 49% (also down one percentage point) believe it's a “bad time to buy.”
Adelaide Timbrell (pictured above), ANZ senior economist, provided context to the latest figures.
“ANZ-Roy Morgan Australian Consumer Confidence rose slightly over the week but is still broadly trending sideway,” Timbrell said. “Confidence in future finances was at its highest level since January 2023, reflecting a more optimistic than pessimistic view among participants.
“Despite a slight fall in economic confidence following last week’s weak GDP results, inflation expectations have settled lower, indicating growing confidence in the battle against inflation.
“However, with GDP expected to remain soft in the first half of the year, it's hoped that tax cuts, fiscal stimulus, and decreasing inflation will boost household incomes and spending in the future.”
Roy Morgan also recently reported a rise in business confidence in January, hitting 93.2 with an increase of 2.1 points from December, signalling the first occurrence of back-to-back monthly gains in the index since early the previous year.
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