Australian consumer confidence has plummeted to its lowest point in a year, driven by increasing anxieties about the overall health of the economy. The latest ANZ-Roy Morgan survey indicates a significant downturn, with confidence levels dropping by 2.1 percentage points to a score of 83. This decline has pulled the four-week average down to its lowest level since October 2024, signalling a concerning trend in consumer sentiment. ANZ is one of Australia’s largest banks, providing a range of financial services to individuals and businesses. Roy Morgan is a well-known market research company.
ANZ’s analysis of the survey data highlights a particularly sharp decrease in household confidence regarding the economy’s prospects over the next five years. This long-term outlook has hit its lowest level in over 15 years, reflecting deep-seated unease about future economic stability. The bank suggests that several international factors are contributing to this pessimism, including the ongoing US government shutdown, uncertainties surrounding global trade policies, and political instability in major economies such as Japan and France.
Further dissecting the data, the decline in confidence appears to be primarily driven by mortgage holders. ANZ economist Sophia Angala attributes this to the growing expectation that the Reserve Bank of Australia (RBA) will likely maintain the current cash rate in November. This anticipation of a continued hold on interest rates seems to be weighing on the confidence of those with mortgage commitments, adding to the overall negative sentiment captured in the survey.
The survey results paint a picture of heightened economic sensitivity among Australian consumers. As households grapple with both domestic and international uncertainties, the drop in confidence underscores the need for policymakers to address these concerns and foster a more stable economic environment.
