Consumer confidence in Australia remained stable last week, with the ANZ-Roy Morgan index rising by 0.1 point to reach 89.4 points. The four-week moving average also increased, up 0.8 point to 89 points.
Weekly inflation expectations decreased slightly by 0.1 point to 4.9%, while the four-week moving average held steady at 5.0%. Assessments of current financial conditions over the past year improved by 0.5 point, but expectations for future financial conditions over the next year fell by 0.6 point.
Short-term economic confidence for the next year edged up by 0.1 point, and medium-term economic confidence for the next five years rose more significantly by 1.7 points. The subindex measuring whether it is a good time to buy a major household item dropped by 0.9 point.
"ANZ-Roy Morgan Australian Consumer Confidence was steady last week despite the RBA cutting the cash rate 25 basis points. That said, on a four-week moving average basis the series continues to move upward and is again at its highest level since June 2022," said ANZ Economist Madeline Dunk.
"Across the housing cohorts, confidence rose for renters and those paying off a mortgage but declined for households who own their home outright. Confidence is highest for those who own their home outright and lowest for renters. On a four-week moving average basis, confidence amongst mortgage holders was at its second highest level since May 2022 – which was when the RBA first started increasing the cash rate," she said.
"ANZ Research expects the RBA to cut rates 25 basis points in November. We think the RBA will then keep the cash rate at 3.35% for an extended period."