Consumer confidence in Australia has seen a modest increase, rising by 0.5 points to reach 87.2 points last week. The four-week moving average also showed a slight uptick of 0.2 points, reaching 86.5 points. Weekly inflation expectations remained steady at 4.7 percent, while the four-week moving average for inflation expectations decreased slightly by 0.1 point to 4.8 percent.
The report indicated that current financial conditions over the past year declined by 4.9 points, whereas future financial conditions for the next twelve months saw a minor decrease of 0.2 points. Short-term economic confidence for the upcoming year increased by 1.2 points, and medium-term economic confidence over the next five years rose by 2.8 points.
One notable change was observed in the 'time to buy a major household item' subindex, which experienced a significant jump of 3.9 points.
ANZ Economist Sophia Angala commented on these developments: "ANZ-Roy Morgan Australian Consumer Confidence rose 0.5 points last week to 87.2 points." She noted that this rise is largely driven by increased momentum in the 'time to buy a major household item' subindex, attributed to end-of-financial-year sales pushing it to its highest level since March 2022.
Angala further elaborated on the economic outlook: "Confidence in the economic outlook strengthened last week as a rise in ABS job vacancies in the three months to May suggested the labour market is likely to remain tight." Despite stable weekly inflation expectations at 4.7 percent, she pointed out that core inflation has reached its lowest level since November 2021 according to monthly CPI data.
She added: "Overall, global trade uncertainty has eased since the April tariff announcements; and the pace of growth in household disposable incomes, alongside expected RBA rate cuts in August 2025 and February 2026 should support an upward movement in ANZ-Roy Morgan Australian Consumer Confidence later this year."