Australian shopper confidence dips | Australian Dealer Information

The newest ANZ-Roy Morgan Shopper Confidence Index has recorded a slight lower, reflecting Australians’ rising considerations about their monetary conditions and the nationwide financial system’s future.

Shopper confidence falls

The ANZ-Roy Morgan Shopper Confidence Index fell by 0.9 factors this week to 81.9, marking a file 62 consecutive weeks beneath the 85-point threshold. Regardless of the decline, the index stays 2.6 factors greater than the identical week final yr and only one level beneath the 2024 weekly common of 82.9.

“ANZ-Roy Morgan Australian Shopper Confidence declined for a second consecutive week,” mentioned Madeline Dunk (pictured above), ANZ economist. “The present financial surroundings has saved shopper confidence beneath 85pts for a file 62 weeks – 23 weeks longer than through the Nineteen Nineties recession.”

Variations have been noticed throughout the states, with confidence falling in Victoria however rising in New South Wales, Queensland, South Australia, and Western Australia.

Monetary and financial considerations

The drop in shopper confidence this week is attributed to decreased optimism relating to private monetary conditions and the broader Australian financial system.

Solely 19% of Australians really feel their households are financially higher off than final yr, whereas 53% really feel worse off. Expectations for private monetary enchancment over the following yr have additionally declined, with solely 31% anticipating higher monetary situations.

Regarding the financial system, simply 10% of Australians are optimistic in regards to the financial outlook over the following 12 months, with 31% anticipating difficult occasions forward. The long-term financial sentiment has equally worsened, with solely 12% of Australians feeling optimistic in regards to the subsequent 5 years.

Buying main home items

The sentiment in direction of buying main home items stays cautious, with 21% of Australians believing it is a good time to purchase, whereas 47% think about it a foul time.

Inflation expectations up

Dunk highlighted the influence of rising inflation expectations, which have reached their highest stage for the yr, contributing to the gloomy financial and monetary outlook.

“That is the primary time since November 2022 (when inflation expectations peaked at 6.8%) that inflation expectations have elevated for 3 weeks in a row,” she mentioned. “Greater petrol costs could also be contributing to this rise in inflation expectations.”

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