Key takeaways
Consumer Confidence is now only 2.3 points above the same week a year ago, April 17-23, 2023 (78.0), and 2.5 points below the 2024 weekly average of 82.8.
Now under a fifth of Australians, 18% (down 4ppts), say their families are ‘better off’ financially than this time last year compared to 51% (up 1ppt) that say their families are ‘worse off’.
Net sentiment regarding the Australian economy in the longer term also deteriorated this week with 12% (down 2ppts) of Australians expecting ‘good times’ for the economy over the next five years compared to over a fifth, 23% (up 2ppts), expecting ‘bad times’ (the highest figure for this indicator so far this year).
I keep careful track of consumer confidence because it's a good indicator of what's ahead for our economy and property markets.
And the latest ANZ-Roy Morgan Consumer Confidence report shows it dropped 3.2pts to 80.3 this week to its lowest level so far this year.
The index has now spent a record 64 straight weeks below the mark of 85.
Consumer Confidence is now only 2.3 points above the same week a year ago, April 17-23, 2023 (78.0), and 2.5 points below the 2024 weekly average of 82.8.
Driving the weekly decrease in Consumer Confidence were increasing concerns about personal financial situations and the performance of the Australian economy.
Consumer confidence has mixed results across the states
Looking around the States, Consumer Confidence was down in New South Wales, Victoria, Queensland, and South Australia, but up in Western Australia.
ANZ Economist, Madeline Dunk, commented:
"ANZ-Roy Morgan Consumer Confidence declined to its lowest level this year.
Looking at the next 12 months, confidence in the outlook for the economy and for households’ personal finances both recorded the largest weekly declines since October last year.
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Both subindices fell to a 2024 low. Confidence about the economic outlook over the next five years also dropped to its weakest level for the year.
Confidence fell across the three housing cohorts.
There was a particularly sharp fall in confidence amongst renters.
Meanwhile, those paying off a mortgage recorded their lowest level of confidence this year."
Here's what the latest survey of consumer confidence found:
- Now under a fifth of Australians, 18% (down 4ppts), say their families are ‘better off’ financially than this time last year compared to 51% (up 1ppt) that say their families are ‘worse off’.
Future financial conditions
- Views on personal finances over the next year deteriorated this week with under a third of Australians, 30% (down 3ppts), expecting their family to be ‘better off’ financially this time next year (the lowest figure for this indicator so far this year) while another 35% (up 2ppts), expect to be ‘worse off’ (the highest figure for this indicator so far this year).
Short-term economic confidence
- Just under one in ten Australians, 9% (down 2ppts) expect ‘good times’ for the Australian economy over the next twelve months compared to over a third, 35% (up 2ppts), that expect ‘bad times’ (the highest figure for this indicator so far this year).
Medium-term economic confidence
- Net sentiment regarding the Australian economy in the longer term also deteriorated this week with 12% (down 2ppts) of Australians expecting ‘good times’ for the economy over the next five years compared to over a fifth, 23% (up 2ppts), expecting ‘bad times’ (the highest figure for this indicator so far this year).
Time to buy a major household item
- Buying intentions were unchanged this week with 23% (unchanged) of Australians saying now is a ‘good time to buy’ major household items while 47% (unchanged), say now is a ‘bad time to buy’.
