ANZ-Roy Morgan Consumer Confidence down 1.8pts to 87.0 in the week the RBA cut interest rates to 3.85%
ANZ-Roy Morgan Consumer Confidence dropped 1.8pts to 87.0 in the week the Reserve Bank (RBA) cut interest rates by 0.25% to 3.85%. Consumer Confidence is 6.8 points above the same week a year ago, May 20-26, 2024 (80.2) and just 0.5pts above the 2025 weekly average of 86.5.
An analysis by State shows Consumer Confidence dropping in New South Wales, Victoria, Queensland and South Australia, but up slightly in Western Australia.
An analysis by housing status shows that it was Home Owners that drove the weekly decrease – Consumer Confidence amongst this group has now declined in the week of both interest rate cuts this year and was down 4.8 points to 85.7, while the Consumer Confidence of People Paying Off The Mortgage increased 2.3 points to 89.7 this week – but not enough to drive the overall index up.
A look across the index shows mixed results with the biggest driver of the decrease being the increasing concerns about the Australian economy’s performance over the next 12 months.
Just under a fifth of Australians, 18% (unchanged), say their families are ‘better off’ financially than this time last year compared to 42% (up 1ppt) that say their families are ‘worse off’.
Net views on personal finances over the next year dropped slightly this week with 28% (down 2ppts) of respondents, expecting their family will be ‘better off’ financially this time next year, while 30% (unchanged) expect to be ‘worse off’.
Views on the economy over the next year declined significantly with just over one-in-eight Australians, 13% (down 1ppt), expecting ‘good times’ for the Australian economy over the next twelve months compared to well over a quarter, 29% (up 5ppts), that expect ‘bad times’.
Net sentiment regarding the Australian economy in the longer-term deteriorated this week with just 13% (down 1ppt) of Australians expecting ‘good times’ for the economy over the next five years compared to nearly a quarter, 24% (up 1ppt), expecting ‘bad times’.
Net buying intentions improved for a third straight week in the week the Reserve Bank cut interest rates to their lowest level in two years with 23% (unchanged) of Australians saying now is a ‘good time to buy’ major household items compared to 35% (down 2ppts) that say now is a ‘bad time to buy major household items’ (the lowest figure for this indicator for over three years since March 2022).
ANZ Economist, Sophia Angala, commented:
“ANZ-Roy Morgan Australian Consumer Confidence fell 1.8pts last week to 87.0pts. There was a broad-based fall across the subindices despite the RBA’s 25bp rate cut last week. This may have been influenced by the RBA’s post-meeting commentary being more dovish than anticipated and the weaker outlook for growth, employment and inflation it expects from global trade uncertainty.
We continue to expect progress to be made in negotiations between the US and its trading partners. This combined with Australia’s expected resilience, particularly with regards to the labour market, will likely lead to a relatively shallow easing cycle. We expect a 25bp rate cut in August and another in Q1 2026.”
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 |
