ANZ-Roy Morgan Consumer Confidence jumps 4.7pts to 89.8 after the Reserve Bank cuts interest rates for the first time since 2020
ANZ-Roy Morgan Consumer Confidence jumped 4.7pts to 89.8 this week after the Reserve Bank cut interest rates by 0.25% to 4.1% - the Bank’s first cut to official interest rates for over four years since November 2020 during the middle of the COVID-19 pandemic.
Consumer Confidence is now 6.6 points above the same week a year ago, February 19-25, 2024 (83.2), and 2.7 points above the 2025 weekly average of 87.1.
A look at Consumer Confidence by State shows increases in all States with the largest increase in Western Australia and increases of at least 3 points in the other States.
A look across the index shows increasing confidence about personal financial situations drove the majority of this week’s increase although all five indices moved in a net positive direction.
Current financial conditions
- More than a fifth of Australians, 22% (up 2ppts), say their families are ‘better off’ financially than this time last year compared to 44% (down 6ppts) that say their families are ‘worse off’ (the lowest figure for this indicator for two years since January 2023).
Future financial conditions
- Views on personal finances over the next year improved significantly this week with 37% of respondents, (up 5ppts), expecting their family will be ‘better off’ financially this time next year (the highest figure for this indicator for over three years since January 2022) while 27% (down 4ppts) expect to be ‘worse off’ (the lowest figure for this indicator for nearly three years since May 2022).
Short-term economic confidence
- Views on the economy over the next year improved this week with over one-in-ten Australians, 11% (up 1ppt) expecting ‘good times’ for the Australian economy over the next twelve months compared to 26% (down 3ppts), that expect ‘bad times’ (the lowest figure for this indicator for nearly three years since April 2022).
Medium-term economic confidence
- Net sentiment regarding the Australian economy in the longer term improved slightly this week with just 13% (up 1ppt) of Australians expecting ‘good times’ for the economy over the next five years compared to under a fifth, 17% (down 1ppt), expecting ‘bad times’.
Time to buy a major household item
- There was virtually no change in net buying intentions this week with only 24% (unchanged) of Australians saying now is a ‘good time to buy’ major household items (the equal lowest figure for this indicator since before the Black Friday sales period) compared to 44% (down 1ppt) that say now is a ‘bad time to buy major household items’.
ANZ Economist, Sophia Angala, commented:
ANZ-Roy Morgan Australian Consumer Confidence rose 4.7pts last week to 89.8pts, its highest level since May 2022. The lift across all subindices follows the RBA’s 25bp rate cut and robust employment data last week.
Across the housing cohorts, confidence amongst mortgage holders jumped 10.7pts to its highest level since early May 2022 (before the beginning of the RBA’s hiking cycle) and is now sitting above the confidence of outright homeowners, which remained largely steady last week. Meanwhile, the confidence of renters also rose 4.0pts, but remains the lowest of the three housing cohorts. We expect a gradual uptrend in ANZ-Roy Morgan Australian Consumer Confidence this year, as tax cuts, easing inflation and the RBA’s easing cycle support household disposable incomes.
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 |
