Australian consumer confidence experienced a marginal increase last week, climbing 0.2 points to reach 77.1, according to the latest ANZ-Roy Morgan survey. However, the four-week moving average has declined to 79.6, marking its lowest level since June 2024. This overall subdued sentiment reflects ongoing concerns about the economic outlook.
Inflation expectations have also seen a slight rise, with weekly figures increasing by 0.5 percentage points to 5.5 per cent. The survey indicates that short- and medium-term economic confidence remains weak, suggesting a cautious approach among Australian consumers. Households have expressed less optimism regarding their financial situation over the coming year.
Furthermore, the outlook for the broader Australian economy over the next five years has deteriorated, with key sub-indices hitting decade lows. This pessimistic long-term view contributes to the overall sense of uncertainty affecting consumer behaviour.
Sophia Angala, an economist at ANZ, noted that the low consumer confidence levels are likely a response to the Reserve Bank of Australia’s decision in February to raise the cash rate to 3.85 per cent. Angala anticipates that this reduced confidence will likely have a dampening effect on household consumption, as consumers become more cautious with their spending.
