Consumer confidence in Australia saw an increase last week, despite ongoing global uncertainty. It rose by 1.3 points, reaching a total of 85.5 points. Over a four-week average, consumer confidence also showed growth, increasing by 0.3 points to the same 85.5 points mark.
In terms of inflation expectations, there was a modest lift. "Weekly inflation expectations" rose by 0.3 percentage points to hit 4.9 per cent, with the four-week moving average maintaining a steady rate of 4.7 per cent.
Examining financial conditions, there was a mixed picture. "Current financial conditions" over the past year reported a decrease of 2.5 points. In contrast, "future financial conditions" looking forward to the next 12 months presented a more optimistic outlook, with a significant jump of 5.4 points.
Economic confidence for the short term also noted a positive change. "Short-term economic confidence," which reflects perspectives on the coming 12 months, climbed 3.9 points. Meanwhile, "medium-term economic confidence," which considers a five-year span, experienced a minor decrease of 0.1 points.
The subindex detailing consumer perspectives on significant household purchases saw a slight decline of 0.2 points, indicating a reluctance or caution among buyers in making large household item investments.
Commenting on the results, ANZ Economist Sophia Angala noted, “ANZ-Roy Morgan Australian Consumer Confidence rose 1.3 points last week to 85.5 points. This was largely a reversal of falling confidence about the 12-month outlook in the previous week.”
Angala further elaborated on the steady nature of consumer confidence over recent months. "Consumer confidence, on a four-week moving average basis, has remained within a tight 85–88 point range since late October 2024. It seems that the upward pressure on confidence from improving domestic incomes is being offset by increasing risk in global economic activity from ongoing tariff announcements."
She also addressed the role of global trade issues. "Alongside the 0.3 percentage point rise in ‘Weekly inflation expectations’ last week, global trade uncertainty is likely continuing to impact household confidence."