ANZ-Roy Morgan Consumer Confidence up 3pts to 107.5 as confidence grows about Australia’s economic performance over the next year

ANZ-Roy Morgan Consumer Confidence increased 3pts to 107.5 on November 28/29, 2020 and is now 12.3pts above the 2020 weekly average of 95.2 and only 0.6pts lower than a year ago on the comparable weekend of November 30/ December 1, 2019 (108.1).

Consumer Confidence increased 3pts to 107.5 this week following the relaxation of lockdown restrictions in South Australia with perceptions about the performance of the Australian economy over the next year driving the weekly increase to a nine-month high.

Current financial conditions

• Now 24% (up 1ppt) of Australians say their families are ‘better off’ financially than this time last year and just under a third, 31% (down 1ppt), say their families are ‘worse off’ financially.

Future financial conditions

• In addition, 38% (down 1ppt) of Australians expect their family to be ‘better off’ financially this time next year compared to 15% (down 1ppt) that expect to be ‘worse off’ financially.

Current economic conditions

• Over one-in-six Australians 17% (up 3ppts) expect ‘good times’ for the Australian economy over the next 12 months while 23% (down 4ppts), expect ‘bad times’ (the lowest figure for this indicator for over 18 months since April 2019).

Future economic conditions

• In the longer term, just under a quarter of Australians, 24% (up 1ppt), are expecting ‘good times’ for the economy over the next five years compared to only 12% (down 1ppt) expecting ‘bad times (the lowest figure for this indicator for over a decade since October 2010).

Time to buy a major household item

• In good news for retailers in the lead-up to Christmas an increasing plurality of Australians, 41% (up 1ppt), say now is a ‘good time to buy’ major household items, while only 25% (down 4ppts), say now is a ‘bad time to buy’ (the lowest figure for this indicator for nine months).

“The relaxation in lockdown restrictions in South Australia drove a bounce in consumer confidence. Confidence is above the neutral 100 level in South Australia, after slipping below in the previous week. Ahead of the holiday season, the ‘time to buy a major household item’ subindex surged to its highest level since 1 March. Perceptions of economic conditions, both current and future, are the highest in more than a year. This could bode well for economic activity and spending over the coming weeks.”