ANZ-Roy Morgan Consumer Confidence unchanged at 97.5

Current financial conditions

• Now 23% (down 1ppt) of Australians say their families are ‘better off’ financially than this time last year and 36% (up 1ppt) say their families are ‘worse off’ financially.

Future financial conditions

• In addition 35% (down 3ppts) of Australians expect their family to be ‘better off’ financially this time next year compared to 18% (up 1ppt) that expect to be ‘worse off’ financially.

Current economic conditions

• However just 10% (up 1ppt) expect ‘good times’ for the Australian economy over the next 12 months while 40% (up 2ppts), expect ‘bad times’.

Future financial conditions

• And in the longer term, 22% (up 3ppts) of Australians are expecting ‘good times’ for the Australian economy over the next five years compared to 16% (unchanged) expecting ‘bad times’.

Time to buy a major household item

• An increasing number of Australians, 38% (up 1ppt), say now is a ‘good time to buy’ major household items, while 31% (down 3ppts), say now is a ‘bad time to buy’ – the lowest figure for this indicator since mid-March before shutdowns impacted large parts of the Australian economy.

The four-week moving average for ‘inflation expectations’ was stable at 3.2%.

"Confidence held up despite weak labour market data and an increase in COVID-19 cases in Victoria. Confidence has been steady since the end of May. Given the backdrop of disappointing news on the labour market and developments in Victoria, we think the result should be seen as encouraging. The consistent improvement in ‘time to buy a household item’ is in line with the ANZ-observed data indicating recovery in retail sales. This component has more than doubled from its historic low at the end of March, though it remains someway below its long-run average.