ANZ-Roy Morgan Consumer Confidence increases for those with a mortgage, but down for home owners after Reserve Bank cuts rates
ANZ-Roy Morgan Consumer Confidence was virtually unchanged at 89.4 this week after the Reserve Bank cut interest rates by 0.25% to 3.6%. Consumer Confidence is now 6.4 points above the same week a year ago, August 12-18, 2024 (83.0) and 2.6pts above the 2025 weekly average of 86.8.
An analysis by State shows mixed results with Consumer Confidence up in Queensland and South Australia, but down in New South Wales, Victoria and Western Australia – essentially a reversal of last week’s results and movements.
Importantly, the Consumer Confidence of Home Owners dropped by 2.6 points this week. The Consumer Confidence of this group has dropped in all three weeks that the Reserve Bank has cut interest rates so far this year by an average of 2.6 points.
In contrast, the Consumer Confidence for People with a Mortgage increased by 2.1 points this week. The Consumer Confidence of this group has increased in all three weeks that the Reserve Bank has cut interest rates so far this year by an average of 5 points.
Almost a quarter of Australians, 24% (up 3ppts), say their families are ‘better off’ financially than this time last year (the highest figure for this indicator so far this year) compared to 42% (up 2ppts) that say their families are ‘worse off’.
Net views on personal finances over the next year weakened with 29% (up 1ppt) of respondents expecting their family will be ‘better off’ financially this time next year, while a rising 32% (up 2ppts) expect to be ‘worse off’.
Net sentiment regarding the economy over the next year was unchanged this week with 12% (down 1ppt) of Australians, expecting ‘good times’ for the Australian economy over the next twelve months compared to a quarter, 25% (down 1ppt), that expect ‘bad times’.
Net views regarding the Australian economy in the longer-term marginally improved this week with 14% (up 1ppt) of Australians expecting ‘good times’ for the economy over the next five years compared to under a quarter, 23% (down 1ppt), expecting ‘bad times’.
Net buying intentions were virtually unchanged this week with under a quarter of respondents, 23% (down 1ppt) saying now is a ‘good time to buy’ major household items compared to 33% (unchanged) that say now is a ‘bad time to buy major household items’.
ANZ Economist, Madeline Dunk, commented:
ANZ-Roy Morgan Australian Consumer Confidence was steady last week despite the RBA cutting the cash rate 25bp. That said, on a four-week moving average basis the series continues to move upward and is again at its highest level since June 2022.
Across the housing cohorts, confidence rose for renters and those paying off a mortgage but declined for households who own their home outright. Confidence is highest for those who own their home outright and lowest for renters. On a four-week moving average basis, confidence amongst mortgage holders was at its second highest level since May 2022 – which was when the RBA first started increasing the cash rate.
ANZ Research expects the RBA to cut rates 25bp in November. We think the RBA will then keep the cash rate at 3.35% for an extended period.
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 |
