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The ANZ-Roy Morgan Consumer Confidence Report highlighted a fall in figures as people awaited the Reserve Bank’s first cash rate call of 2025.
Falling 1.6 points to 85.1 points, confidence is at its lowest point for the year. However, it’s still 2.3 points higher than this time last year, but still 1.6 points below the 2025 weekly average of 86.7 points.
ANZ economist Sophia Angala said: “ANZ-Roy Morgan Australian Consumer Confidence declined 1.6pts last week to 85.1pts, the lowest point in the year, so far. The four-week moving average has remained within the tight 86–86.9 points range since the beginning of January.
“This week’s decline in the series was largely due to a fall in households’ confidence in their personal finances. Both financial conditions subindices fell to a 2025 low, as confidence in the financial outlook over the next year recorded its largest weekly decline since June 2024. Meanwhile, households’ confidence in the short- and long-term economic outlook are still above their H2 2024 averages and in the year so far.”
Despite this dip, 20 per cent of Aussies said their families are better off financially than this time last year. However, half still said they are worse off.
Meanwhile, 32 per cent expect their family to be better off financially this time next year, which is the lowest this figure has been all year. Another 31 per cent expect to be worse off.
This is impacting spending with 45 per cent believing now is a bad time to purchase major household items. Only 24 per cent believe it’s a good time.
Pessimism and concern over the state of the economy are still high as 29 per cent are expecting poor economic conditions over the coming year, compared to just 10 per cent who expect it to perform well.
Over the next five years, this drops to 18 per cent who expect bad times and 12 per cent who are optimistic.
This data mirrors CBA’s household spending data that saw Aussies taking a break after a busy silly season.
“The flat January [results] was somewhat expected following the spike in spending we saw in the last three months of 2024 off the back of Black Friday, Cyber Monday and Boxing Day sales. Essentials made up the three highest spending categories in the month as consumers pulled back on discretionary spending,” said CBA senior economist Belinda Allen.
“We anticipate a total of 100 basis points of monetary policy easing throughout 2025 to drive an improvement in the consumer spending pulse.”
