Data collected last weekend (Saturday and Sunday), based on 1,008 face-to-face interviews.
ANZ-Roy Morgan Consumer Confidence rose 1.7% to 110.6 last week, following the RBA’s decision to cut rates to record low levels. Despite this increase, overall confidence remains below long run average levels and nearly 4% below levels six months ago. Although confidence is close to 7% higher compared to this time last year when the Budget was set to be released, it remains on a downward trend.
The rise last week was driven by an improvement of consumers’ view of their own finances. Confidence in household finances compared to a year ago rose 5.6%, reaching the highest levels since February. Consumers were also more confident about their future finances, which rose 4.5%.
Overall, consumers’ view on the economic outlook remains soft. Last week, the economic outlook for the next 12 months fell for the second consecutive week, although this was largely offset by a rise in the economic outlook for the next five years.
ANZ Chief Economist Warren Hogan commented:
“The RBA’s rate cut last week looks to have supported households’ confidence around their finances. However, it is no surprise that consumers remain concerned about the economic outlook with unemployment reported to have increased to 6.2% in April. Moreover concerns around the outlook are likely to be heightened leading up to the release of the Budget tonight. In an environment of declining investment, rising unemployment and low inflation, the announcements in the Budget tonight will be critical in shaping consumers’ view of the economic outlook. So far the Government’s pre-Budget announcements do not appear to be impacting confidence in the same way as last year, although overall confidence has been trending lower since the start of 2015. The progress of our weekly measure of consumer confidence will be an important first read on the impact of the Government’s Budget on the underlying economy. Going forward, the sustainability of the ANZ-Roy Morgan Consumer Confidence Rating will be important in assessing whether rate cuts and new Budget measures will ultimately lift household spending.”
Click to view the PDF of the ANZ-Roy Morgan Weekly Consumer Confidence Release.
Latest ANZ-Roy Morgan Consumer Confidence Releases
Latest ANZ-Roy Morgan Australian & Asia-Pacific Consumer Confidence Data Tables
Related Research Reports
The latest Roy Morgan Consumer Confidence Monthly Report is available on the Roy Morgan Online Store. It provides demographic breakdowns for Age, Sex, State, Region (Capital Cities/ Country), Generations, Lifecycle, Socio-Economic Scale, Work Status, Occupation, Home Ownership, Voting Intention, Roy Morgan Value Segments and more.
You can also view our monitor of Monthly Australian Unemployment & Under-employment Estimates.