Australian consumer confidence saw a marginal increase last week, climbing 0.7 percentage points to reach 84.2 per cent, according to the latest ANZ-Roy Morgan data. The four-week average remained steady at 84.5 per cent, indicating a period of relative stability in overall consumer sentiment. This lift was largely attributed to a significant 5.2-point surge in the “time to buy a major household item” subindex, coinciding with the commencement of Black Friday sales events across the country. This suggests that promotional periods continue to have a positive impact on consumer willingness to spend.
Breaking down the components of the index, short-term economic confidence showed a positive trend, increasing by 2.1 percentage points. Medium-term confidence, reflecting expectations over the next five years, also saw an uptick of 1.2 percentage points. However, not all subindexes reflected positive sentiment. Current financial conditions experienced a slight decrease of 0.9 percentage points, while future financial conditions saw a more pronounced drop of 3.8 percentage points over the past year.
Inflation expectations remained relatively stable, with weekly figures holding at 5.2 per cent and the four-week average at 5.1 per cent. Of note, ANZ reported a shift in confidence levels between mortgage holders and outright home owners. For the first time since July, confidence among mortgage holders has surpassed that of outright home owners, while confidence among renters has declined to its lowest level since August 2024. This divergence highlights the varying impacts of economic conditions on different segments of the housing market.
