Boost in confidence attributed to improved perspectives on personal finances
There was a slight uplift in consumer confidence over the past week, rising by 1.4 points to 83.1, according to the latest report from ANZ-Roy Morgan.
Despite the increase, the index remains below the 85-point mark for a record 60 consecutive weeks. The current figure is 6.5 points higher than the same period last year and aligns closely with the weekly average of 83.
State-wise, consumer confidence saw an increase in New South Wales and Victoria, a decline in Western Australia, and remained largely unchanged in Queensland and South Australia.
The boost in confidence is attributed to improved perspectives on personal finances both in retrospect over the past year and looking ahead to the coming year.
In terms of current financial conditions, approximately one-fifth of Australians (21%, up by three percentage points) believe their financial situation is better than last year, while a majority (52%) feel they are worse off.
Meanwhile, views on future financial conditions are split, with around one-third (34%, up by two percentage points) optimistic about their financial situation improving in the next year, and 31% (down by one percentage point) anticipating a decline.
Short-term economic confidence remains low, with only 10% of Australians expecting the economy to perform well in the next 12 months, versus 32% who foresee challenging times ahead.
Medium-term economic confidence saw a slight improvement, with 15% (up by three percentage points) of Australians optimistic about the economy over the next five years, though 21% still expect downturns.
Intentions to buy major household items remain steady, with 21% (up by one percentage point) considering it a good time to purchase, against 50% who view it as inadvisable.
“ANZ-Roy Morgan Australian Consumer Confidence rose 1.4 points last week after the RBA shifted its language in a more dovish direction and labour market data surprised to the upside, with employment rising by over 100,000 in February,” said Madeline Dunk (pictured), economist at ANZ. “Recent progress in inflation expectations hit a roadblock, with the series rising 0.3 points to 5.1%.
“Confidence among renters lifted 7.1 points to its highest level since early January. Despite this, renters remain the least confident among the three housing cohorts. Confidence is currently three points lower for renters compared to households paying off a mortgage.”
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