ANZ-Roy Morgan Consumer Confidence fell by 2.3 pts to 85.5 this week and is now 19.1 pts below the same week a year ago. In addition, consumer confidence is now 5.1 pts below the 2022 weekly average of 90.6.
The fall in consumer confidence was broad-based this week with the index falling in all five mainland states — the first time that has happened since early August. Driving the decline was less confidence about the Australian economy’s performance over the next year and next five years.
Now 24 per cent of Australians (unchanged) said their families are “better off” financially than this time last year compared to an unchanged 42 per cent who said their families are “worse off” financially.
Looking forward, now fewer than a third of Australians, 31 per cent (down 1ppt), expect their family to be “better off” financially this time next year while 31 per cent (unchanged), expect to be “worse off”.
Only 6 per cent (down 3ppts) of Australians expect “good times” for the Australian economy over the next 12 months compared to more than a third, 36 per cent (up 3ppts), who expect “bad times”.
There has been a sharp decline in terms of sentiment regarding the Australian economy in the longer term with fewer than one in eight, 12 per cent (down 5ppts) of Australians expecting “good times” for the economy over the next five years compared to 19 per cent (up 3ppts) expecting “bad times”.
When it comes to buying intentions 25 per cent (up 1ppt) of Australians, said now is a “good time to buy” major household items while almost twice as many, 43 per cent (down 2ppts), said now is a “bad time to buy”.
ANZ head of Australian economics David Plank said the weakness in global financial markets through last week weighed on Australian consumers.
“A plethora of negative news last week ranging from the UK’s mini budget to hawkish Fed commentary impacted the AUD, which weakened to its two-year lows,” he said.
“We often see consumer sentiment soften in line with AUD weakness. The jump in inflation expectations, likely linked to the end of the temporary petrol excise cut and uptick in petrol prices, also weighed on sentiment. Consumer confidence will remain fragile as long as market volatility is the dominant theme globally. The RBA’s October rate decision will also impact in the near-term.”
