Consumer confidence in Australia dipped by 2.6 points to reach 84.2 points last week, according to a recent report. The four-week moving average experienced a slight increase of 0.1 points, settling at 85.1 points.
Inflation expectations remained stable at 4.6%, while the four-week moving average saw a slight decrease of 0.1 percentage points to 4.7%. In this context, current financial conditions over the past year declined by 1.4 points. Future financial conditions, looking ahead 12 months, also saw a decrease of 3.6 points.
The report highlighted a decline in short-term economic confidence over the next 12 months, which fell by 6.4 points, while medium-term economic confidence spanning the next five years dropped by 2.3 points. Despite these declines, the subindex measuring the time to buy a major household item rose by 0.6 points.
ANZ Economist Sophia Angala commented on the decrease, stating, "Consumer confidence fell 2.6 points last week to 84.2 points. The drop likely reflects the more pessimistic global backdrop following US tariff announcements - the previous week’s survey was taken partly before and partly after the initial announcement."
The report noted that consumer confidence fell, particularly in subindices related to the year ahead, with financial and economic confidence both declining below their averages from the second half of 2024. ANZ further reported, “In a speech last week, the Reserve Bank of Australia (RBA) Governor Michele Bullock noted the RBA is focusing on how global uncertainty could impact household and business decisions domestically. We expect the RBA to cut the cash rate by 25 basis point at each of its May, July and August meetings this year.”
The next ANZ-Roy Morgan Australian Consumer Confidence report is scheduled for release on Wednesday, April 23, due to the Easter public holidays.