Consumer confidence inches up | Australian Broker News

ANZ-Roy Morgan Consumer Confidence climbed 0.8 points to 84.9 this week, marking its highest level since January 2023.

Despite the slight rise, confidence has remained below the 85-point mark for a record 86 consecutive weeks.

The current level is 8.5 points higher than the same time last year and 2.8 points above the 2024 weekly average of 82.1.

Consumer confidence by state

Consumer Confidence showed mixed results across the states, with improvements in New South Wales and South Australia. Confidence remained steady in Victoria and Queensland but dropped in Western Australia.

Financial sentiment shows modest gains

A slight improvement was seen in Australians’ views on their current financial status, with 23% (up 1 point) reporting they are better off than a year ago, while 48% still feel worse off.

Outlooks on personal finances remain largely unchanged, with 34% (up 1 point) expecting to be better off financially next year, compared to 31% (up 1 point) who expect their situation to worsen.

Economic outlook improves slightly

Optimism about the short-term economic future edged up, with 10% (up 1 point) of Australians anticipating “good times” in the coming year, while 31% (down 1 point) foresee “bad times”.

Sentiment regarding the economy over the next five years improved slightly, with 13% (up 1 point) expecting better times and 19% (down 2 points) predicting worse conditions.

Purchasing sentiment remains low

Buying intentions for big-ticket items remain muted, with 22% (down 1 point) seeing now as a good time to buy major household items, while 49% (up 1 point) believe it is a bad time.

ANZ on rising consumer confidence

ANZ Economist Madeline Dunk (pictured above) noted the recent lift in confidence was driven by improved economic outlooks for the next 12 months and five years, reaching their highest levels since early 2023.

Dunk suggested this optimism may be linked to positive labour market data, showing a significant rise in employment and record-high participation rates.

“We expect the labour market to remain resilient and see only a modest lift in the unemployment rate to 4.4%,” the ANZ economist said.

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