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Australian households are feeling slightly less pessimistic, but consumer sentiment remains weak despite rising to its highest level since early March, according to the latest ANZ-Roy Morgan survey.
The consumer confidence index rose 2.7 points to 68.8 in the week to May 31—the improvement marking a partial recovery from late March, when the index fell to 58.8. However, the latest reading remains well below the 2025 average of 86.3 and the long-run monthly average of 108.8.
The latest rise was spread across all five parts of the index. The biggest gain came from short-term economic confidence, which measures expectations for the next 12 months. It rose 4.6 points to 61.9.
Households also felt slightly better about their own finances. Current financial conditions, which compare household finances with a year ago, increased 3.2 points to 60.1. Future financial conditions, which measure expectations for the next 12 months, rose 2.2 points to 75.1.
The reading for whether now is a good time to buy a major household item gained 3.1 points to 71.2. Medium-term economic confidence, which looks at expectations for the next five years, edged up 0.4 points to 75.8.
Despite these gains, the report showed sentiment is still weak compared with last year. Current financial conditions remained below the 2025 average of 76, while future financial conditions were below last year’s average of 98. The major household item index was also lower than its 2025 average of 87.
ANZ economist Sophia Angala said weak consumer confidence supports the bank’s view that the RBA cash rate is likely to stay at 4.35% over the near term.
Inflation expectations also eased over the week. Weekly inflation expectations fell 0.2 percentage points to 5.9%, their lowest level since the survey week ending March 1. The four-week moving average declined 0.2 percentage points to 6.1%.
“The pullback in inflation expectations likely reflects recent monthly inflation data, which was softer than expected,” Angala said.
The next ANZ-Roy Morgan Australian Consumer Confidence report is scheduled for release on Wednesday, June 10, due to the King’s Birthday public holiday.
