Australian consumer confidence has recorded its weakest New Year’s reading in over 15 years, according to the latest ANZ-Roy Morgan data. The index rose by 3 points last week, reaching 84.5. However, this increase follows a broader downward trend, with the four-week average slipping 0.7 points to 83.8. Despite the overall subdued sentiment, some sub-indexes showed positive movement.
The “time to buy a major household item” subindex experienced a notable jump of 5.9 points. This marks its third-highest reading since early last year, suggesting some consumers are willing to make significant purchases. Weekly inflation expectations also saw a slight decrease, easing 0.2 percentage points to 5.4 per cent. This development is supported by recent monthly data indicating a slight slowdown in annual inflation.
Economic confidence showed mixed results across different time horizons. Short-term economic confidence improved by 2.9 points, while medium-term confidence rose by 3.3 points. These increases indicate a degree of optimism about the immediate and near-term economic outlook. However, the overall weakness in consumer confidence suggests broader concerns persist.
ANZ economist Sophia Angala commented on the data, stating, “ANZ-Roy Morgan Australian Consumer Confidence had its usual jump in early January; however, this is the weakest New Year’s print in over 15 years.” The ANZ-Roy Morgan Australian Consumer Confidence Rating is based on weekly face-to-face interviews with around 1,500 people. ANZ is one of Australia’s big four banks and provides a range of banking and financial products and services to retail, small business, corporate and institutional clients.
