Australian consumer confidence has experienced a notable upswing, according to the latest ANZ-Roy Morgan survey. The consumer confidence index rose 2.9 points to 87.1 last week, reaching its highest level since early September. This increase signals a potential shift in consumer sentiment as the year draws to a close. 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 that provides insights into consumer behaviour.
The primary driver of this surge in confidence appears to be a significant increase in the ‘time to buy a major household item’ subindex, which jumped by 6 points. Analysts suggest that this boost is likely connected to pre-Black Friday sales events, as consumers anticipate and take advantage of discounted prices on big-ticket items. This pre-holiday spending could provide a welcome stimulus to the retail sector.
However, the survey also revealed a rise in weekly inflation expectations, which climbed to 5.4 per cent. This figure represents the highest level since December 2023, indicating that consumers are increasingly concerned about the potential for rising prices. The Reserve Bank of Australia is monitoring inflation expectations closely as it considers future monetary policy decisions.
Looking ahead, ANZ economist Sophia Angala noted that the full October Consumer Price Index (CPI), scheduled for release on Wednesday, is expected to show a slight disinflation compared to September. Market participants will be watching the CPI data closely to assess the overall health of the Australian economy and the trajectory of inflation.
