ANZ-Roy Morgan Australian Consumer Confidence dipped 0.6 points to 86.4 in the week after the Reserve Bank of Australia (RBA) cut the official cash rate by 25 basis points to 3.85%.
The slight dip suggests the move failed to boost household optimism.
Despite the fall, confidence remains 5.9 points higher than the same period in 2024 and aligns closely with the 2025 weekly average of 86.5.
While overall consumer confidence slipped, mortgage brokers have reported a noticeable lift in market activity. After months of hesitation, RBA’s latest move appears to be restoring borrower confidence and renewing momentum across housing and lending markets.
State-level data revealed diverging trends. Confidence declined in New South Wales and Western Australia, while Victoria, Queensland and South Australia posted marginal increases.
The key driver of the decline was a dip in confidence about personal finances over the next 12 months. There was a net three-point decline in the outlook for personal finances.
Just 18% of Australians (unchanged) said their family is “better off” financially than a year ago, while 42% (unchanged) said they are “worse off”. Looking ahead, 26% (down 2pts) expect to be ‘better off’ next year, while 31% (up 1pt) expect to be “worse off”.
Short-term views on the economy improved slightly. Now, 14% (up 1pt) expect “good times” over the next year, compared to 28% (down 1pt) who expect “bad times”.
However, long-term sentiment softened. The share of respondents expecting “good times” over the next five years rose to 14% (up 1pt), but those expecting “bad times” climbed more sharply to 26% (up 2pts) – the highest in over five years, dating back to April 2020.
The index measuring intentions to buy major household items was virtually unchanged. About 23% of Australians say it’s a “good time to buy” (unchanged), while 36% (up 1pt) believe it’s a “bad time”.
ANZ Economist Sophia Angala (pictured) said the latest results show diverging confidence levels depending on housing status.
“ANZ-Roy Morgan Australian Consumer Confidence fell 0.6pts last week to 86.4pts, largely driven by lower confidence in the 12-month financial outlook,” Angala said. “Economic confidence slightly rose. Weekly inflation expectations lifted to 5.0% last week with inflation data last week pointing to a stalling in disinflation.
“Confidence across the housing cohorts has converged. Confidence of outright homeowners has fallen, while mortgage holder confidence has risen likely due to the fall in interest rates in February and May. Confidence of mortgage holders at its highest level in three years.”
