ANZ-Roy Morgan Consumer Confidence drops 2.6pts to 74.9 after higher-than-expected official inflation for July
ANZ-Roy Morgan Consumer Confidence dropped 2.6pts to 74.9 in late August after the ABS announced higher-than-expected official inflation of 3.5% for July. Consumer Confidence is 13.1pts lower than a year ago, August 25-31, 2025 (88.0), and 2.5pts above the 2026 weekly average of 72.4.
An analysis by State shows confidence decreasing in New South Wales, Victoria, Western Australia, and South Australia, but increased slightly in Queensland.
Consumer Confidence was driven lower this week due to increasing concern about the performance of the Australian economy going forward following the higher-than-expected official ABS inflation reading for July of 3.5% which means further interest rate increases are likely.
Now 18% (up 1ppt) of Australians say their families are ‘better off’ financially than this time last year compared to 50% (up 1ppt) that say their families are ‘worse off’.
Views on personal finances over the next year were virtually unchanged this week with 23% (up 2ppts) of respondents expecting their family will be ‘better off’ financially this time next year, while 40% (up 3ppts), expect to be ‘worse off’.
Net sentiment regarding the economy over the next year deteriorated this week with 7% (down 1ppt) of Australians, expecting ‘good times’ compared to 40% (up 5ppts), that expect ‘bad times’.
Australians’ views about the economy’s performance over the longer-term of the next five years has also deteriorated with just 8% (down 1ppt) of Australians expecting ‘good times’ for the economy over the next five years compared to well over a quarter, 29% (up 2ppts), expecting ‘bad times’.
Net buying intentions decreased this week with 20% (unchanged) of respondents saying now is a ‘good time to buy’ major household items compared to a rising 43% (up 4ppts) that say now is a ‘bad time to buy major household items’.
ANZ Economist, Sophia Angala, commented:
“After four consecutive weekly gains, the ANZ-Roy Morgan Australian Consumer Confidence index fell 2.6pts to 74.9pts last week. The decline was broad-based but was led by decreasing confidence in future economic conditions. This may have reflected last week’s stronger-than-expected July CPI release. Although weekly inflation expectations were unchanged last week, the series has trended higher in recent weeks.
“Given persistent inflation and the resilience in household spending, we now expect the RBA to hike the cash rate by 25bp to 4.60% in November. Against a backdrop of weak consumer confidence, a November rate hike is expected to weigh further on consumer spending over the near term.”
Check out the latest results for our weekly surveys on Business Confidence, Consumer Confidence, and Voting Intention as follows:
Roy Morgan Business Confidence Statistics
ANZ – Roy Morgan Consumer Confidence Statistics
Federal Voting – Government Confidence Rating
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
Consumer Confidence – Monthly Detailed Report in Australia.
Business Confidence – Monthly Detailed Report in Australia.
Consumer Banking Satisfaction - Monthly Report in Australia.
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Margin of Error
The margin of error to be allowed for in any estimate depends mainly on the number of interviews on which it is based. Margin of error gives indications of the likely range within which estimates would be 95% likely to fall, expressed as the number of percentage points above or below the actual estimate. Allowance for design effects (such as stratification and weighting) should be made as appropriate.
| Sample Size | Percentage Estimate |
| 40% – 60% | 25% or 75% | 10% or 90% | 5% or 95% | |
| 1,000 | ±3.0 | ±2.7 | ±1.9 | ±1.3 |
| 5,000 | ±1.4 | ±1.2 | ±0.8 | ±0.6 |
| 7,500 | ±1.1 | ±1.0 | ±0.7 | ±0.5 |
| 10,000 | ±1.0 | ±0.9 | ±0.6 | ±0.4 |
| 20,000 | ±0.7 | ±0.6 | ±0.4 | ±0.3 |
| 50,000 | ±0.4 | ±0.4 | ±0.3 | ±0.2 |
