Australian Consumer Confidence Remains in Pits Amid Inflation Fears

Australian consumer confidence remains in the doldrums, according to the latest ANZ-Roy Morgan Australian Consumer Confidence report. The measure rose a modest two points to 73.9 last week, but is still well below the neutral 100 level that separates optimism from pessimism.

Consumers remain skeptical of a recovery in their day-to-day living costs, with expected inflation at 6.1% on a four-week moving average. This is higher than the current rate of 3.5%, and above the highest annualised average over the past decade of 6.62% in 2022.

ANZ economist Sophia Angala noted that improved sentiment around personal finances drove the survey's gains, but that broader confidence remains 'well below the neutral 100 level'. She linked this to inflationary pressure, global uncertainty and higher interest rates from the Reserve Bank of Australia (RBA).