ANZ-Roy Morgan Consumer Confidence down slightly to 108.7 – 0.4pts higher than the same weekend a year ago

ANZ-Roy Morgan Consumer Confidence was down slightly by 0.2pts to 108.7 on January 16/17, 2021. Consumer Confidence is now 12.7pts above the 2020 weekly average of 96.0 and is 0.4pts higher than the same week a year ago, January 18/19, 2020 (108.3).

There was little change this week compared to the first reading of 2021 a week ago but slightly fewer Australians say now is a ‘good time to buy major household items’ than they did a week ago and during the pre-Christmas sales period in December.

It’s worth noting there is ongoing uncertainty about the future economic prospects for the Australian economy with more than half of respondents not able to say whether to expect ‘good times’ or ‘bad times’ for the Australian economy over the next year and next five years.

Current financial conditions

• Now 25% (down 1ppt) of Australians say their families are ‘better off’ financially than this time last year and 30% (up 2ppts), say their families are ‘worse off’ financially.

Future financial conditions

• In addition, 41% (up 2ppts) of Australians expect their family to be ‘better off’ financially this time next year compared to 13% (down 1ppt) that expect to be ‘worse off’ financially.

Current economic conditions

• Slightly fewer Australians, 14% (down 1ppt) expect ‘good times’ for the Australian economy over the next 12 months while 21% (down 1ppt), expect ‘bad times’.

Future economic conditions

• In the longer term, an unchanged 22% of Australians are expecting ‘good times’ for the economy over the next five years compared to only 12% (down 1ppt) expecting ‘bad times’.

Time to buy a major household item

• A clear plurality of Australians, 42% (down 2ppts), say now is a ‘good time to buy’ major household items, while only 25% (up 1ppt), say now is a ‘bad time to buy’.

"Consumer confidence was close to unchanged over the weekend, consolidating at an above neutral level – though below the long-run average. Sentiment is higher than a year ago, but the comparison reflects the impact of the bushfires in late 2019 and early 2020. Within the detail, ‘future financial conditions’ stood out with a gain of 2.4% and remain well above the long-run average. Inflation expectations have pulled-back a touch from their recent high."