Consumer confidence stagnates pre-budget | Australian Broker News

Consumer confidence stagnates pre-budget | Australian Broker News


Consumer confidence stagnates pre-budget

Now on its 67th week under the 86-point mark

In the week main as much as the Federal Budget, the ANZ-Roy Morgan Consumer Confidence Index remained regular at 80.2, persevering with its 67-week pattern under the 85-point mark.

This stagnation occurred because the nation anticipated new finances measures aimed toward addressing cost-of-living pressures.

Consumer confidence state-by-state

Consumer confidence diverse throughout Australia, with declines in Victoria, Western Australia, and South Australia, whereas New South Wales and Queensland noticed slight enhancements.

Financial views

About 20% of Australians really feel financially higher off than final 12 months, per earlier weeks, whereas 50% really feel worse off, a slight improve in unfavourable sentiment.

Expectations for the following 12 months remained secure with 32% optimistic about enchancment, however an equal share anticipating monetary decline.

Economic outlook

Only 9% of Australians count on financial enchancment within the subsequent 12 months, reflecting pervasive cautiousness amidst ongoing financial challenges.

Long-term confidence additionally waned, with solely 11% optimistic in regards to the subsequent 5 years, whereas 22% predict harder occasions forward.

Consumer spending intentions

There was a notable lower within the variety of Australians who assume it is a good time to purchase main home goods, with solely 19% in favor, the bottom up to now this 12 months. Conversely, 52% consider it is a unhealthy time to make such purchases, marking the best degree of pessimism recorded in 2024.

“Consumer confidence fell 3.8 factors for these paying off a mortgage, reaching a 2024 low,” Dunk stated. “This sentiment is even weaker than that amongst renters, possible influenced by discussions suggesting extended excessive charges.”

She additionally famous the decline in confidence relating to the economic system’s five-year outlook and buying situations for main gadgets, each hitting their lowest factors for the 12 months.

The ANZ economist stated that they’re anticipating a possible rise in confidence following the finances announcement.

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