Consumer confidence in Australia has exhibited a notable decline in recent evaluations, with the weekly confidence index dropping by 2.1 points to 83.4. This downturn has also affected the four-week moving average, which decreased by 0.5 points to stand at 85.
Alongside the decrease in confidence, inflation expectations have risen slightly. Weekly expectations increased by 0.2 percentage points to 5.1%, with the four-week average ticking up by 0.1 percentage points to 4.8%.
In terms of financial conditions, there has been a fall in both current and future assessments. Current financial conditions over the past year declined by 2.0 points, whereas future financial conditions projected for the next 12 months dropped by a significant 7.1 points.
Economic confidence in the near and medium term has not fared much better. Short-term economic confidence for the next 12 months eased by 0.2 points, while medium-term confidence for the next five years lowered by 2.9 points. On a slightly positive note, the subindex reflecting the time deemed suitable to purchase a major household item rose by 1.9 points.
ANZ Economist, Sophia Angala, commented on the findings: “There was a particularly sharp fall in households’ confidence about their financial conditions over the next year. The subindex is now sitting at its lowest level since mid-July 2024.”
Angala also noted a diminished confidence in the economic outlook more broadly. “Households are also feeling less confident in the economic outlook. We expect growth in the US and China to slow in 2025, following increased economic uncertainty from US tariff announcements. The implications for Australia are likely to flow from the impacts on global growth and local confidence, and it appears that the upward trend in the ANZ-Roy Morgan Australian Consumer Confidence series from rising disposable incomes has been weakened by global uncertainty.”
The report has been sourced from ANZ and reflects ongoing global circumstances that are influencing local consumer confidence.