Consumer confidence in Australia declined last week, with the index dropping 1.6 points to 85.5, according to recent data. The four-week moving average for consumer confidence rose slightly by 0.3 points to reach 85.1.
Weekly inflation expectations increased by 0.2 percentage point to 5.6 percent, while the four-week moving average for inflation expectations edged up by 0.1 percentage point to 5.4 percent.
In terms of financial conditions, perceptions of current financial situations over the past year fell by 0.9 points and expectations for future financial conditions over the next twelve months dropped by 2.5 points.
Short-term economic confidence, reflecting views on the economy over the next year, decreased by 2.9 points, and medium-term economic confidence—looking ahead five years—declined by 5.3 points.
Despite these declines in confidence and outlooks, there was an increase in willingness to make significant purchases; the subindex measuring whether it is a good time to buy a major household item rose by 4.1 points.
ANZ Economist Madeline Dunk commented: "Australian Consumer Confidence declined 1.6pts last week, with households feeling less confident about the economic outlook and their own finances. However, Black Friday sales appear to have boosted the ‘time to buy a major household item’ subindex, which rose to its highest level since March 2022."
She added: "The stronger than expected inflation data may have impacted household confidence. It is also likely to have affected household views about the inflation outlook, with inflation expectations rising to their highest level in almost two years. The inflation expectations measure has been trending higher through 2025 and is currently 1.3 percentage point above the pre- COVID five-year average."
For further information or media enquiries regarding this report, Siobhan Jordan serves as Senior External Communications Manager at ANZ and can be contacted at +61 403 988 326.