Australian consumer confidence has climbed above 90 points for the first time since May 2022, when the Reserve Bank of Australia (RBA) initiated its cycle of interest rate hikes. This upswing follows the release of Consumer Price Index (CPI) data last week, which indicated a cooling in underlying inflation and increased speculation about a potential rate cut this month.
The ANZ-Roy Morgan Consumer Confidence index recorded a substantial increase of 3.9 percentage points, reaching 90.6. This improvement was driven by notable gains in key components of the index. Assessments of current financial conditions compared to the past year rose by 6.8 percentage points, while expectations for future financial conditions over the next 12 months saw an even larger jump of 7.9 percentage points.
According to ANZ economist Sophia Angala, the rise in confidence aligns with the bank’s expectation of a 0.25 percentage point reduction in the cash rate at the upcoming RBA board meeting this month. The improved consumer sentiment suggests households are becoming more optimistic about their financial prospects amid signs that inflationary pressures are easing.
ANZ is one of Australia’s largest banking and financial services groups. Roy Morgan is Australia’s best known and longest established market research company.
