Australian consumer confidence has edged lower, according to the latest ANZ-Roy Morgan survey. The index decreased by 1.3 percentage points last week, settling at 84.5. The four-week moving average also saw a slight dip, falling 0.1 points to 84.3. These figures reflect growing unease among Australian consumers regarding their financial situations and the broader economic outlook.
Inflation expectations have risen, adding to the concerns. Weekly inflation expectations increased by 0.4 percentage points to 5.2 per cent. The four-week average remained steady at 5 per cent, indicating sustained inflationary pressures perceived by consumers. The survey highlighted declines across several key indicators, including current financial conditions, which dropped 0.3 points, and future financial conditions over the next 12 months, which experienced a more significant fall of 3.9 points.
Short-term economic confidence also weakened, easing by 3.2 points. ANZ economist Sophia Angala pointed to the recent Q3 CPI results as a likely factor contributing to the dampened sentiment. The CPI data indicated a stalling of disinflation, leading to heightened inflation expectations and weaker confidence in household finances.
Angala suggested that the trimmed mean CPI of 3 per cent would likely support the Reserve Bank of Australia (RBA) in maintaining the cash rate at 3.6 per cent. She anticipates a final 25 basis point cut in the first half of 2026. The RBA is the central bank of Australia. Its duty is to maintain price stability and full employment.
