Australian consumer confidence has experienced a decline, slipping 2 points to 81.5, according to the latest ANZ-Roy Morgan data. The four-week moving average also edged down by 0.7 points, settling at 84.4. This indicates a cooling in overall consumer sentiment as the year progresses.
The primary driver of this week’s decline was a significant 4.1-point drop in the ‘time to buy a major household item’ subindex. This particular index has seen a substantial decrease of nearly 10 points over the past two weeks. Analysts suggest this fall is likely connected to the conclusion of Black Friday sales, which typically spur consumer spending.
Inflation expectations remained relatively stable, with weekly figures holding steady at 5.6 per cent. The four-week average saw a slight increase of 0.1 of a percentage point, also reaching 5.6 per cent. In terms of economic outlook, short-term confidence regarding the next 12 months decreased by 3.1 points. Furthermore, the medium-term outlook over the next five years experienced a fall of 1.7 points, reaching a new cycle low.
ANZ economist Sophia Angala noted that recent concerns surrounding a potential interest rate hike and the release of softer labour market data may have contributed to the decline in household sentiment. She also indicated that a continued sense of caution among consumers is anticipated to extend into 2026.
