Consumer confidence in Australia saw a small increase last week, rising by 0.4 points to reach 86.7 points, according to the latest ANZ-Roy Morgan survey. However, the four-week moving average declined slightly by 0.1 of a point to 87.
Weekly inflation expectations increased by 0.2 percentage points to 4.9 percent, with the four-week moving average also at 4.9 percent.
The measure for current financial conditions over the past year was up by one point, while future financial conditions for the next twelve months dropped by 2.8 points.
Short-term economic confidence, looking ahead twelve months, rose by 0.8 of a point and medium-term economic confidence over five years gained one point.
The index tracking whether it is a good time to buy major household items jumped two points.
"ANZ-Roy Morgan Australian Consumer Confidence rose 0.4 of a point to 86.7 points. Looking globally, an array of trade deals reached by the US and other trading partners over the past week may have driven some increased optimism about the economy," said ANZ Economist Sophia Angala.
"Despite the weekly lift, upward momentum in consumer confidence has stalled. The four-week moving average of consumer confidence has moved within a tight range of 85–88 points since October 2024. Recent trade policy uncertainty and the RBA’s surprise decision to hold the cash rate in July have kept confidence from rising, despite rising average incomes," Angala said.
"We expect the RBA to cut the cash rate in August and November. Along with further rises in incomes, this should support consumer confidence later in the year."