Australian consumer confidence saw a notable rise in the week leading up to the Federal Election.
According to fresh data from Roy Morgan and ANZ, confidence climbed by 4.1 points to reach 87.5 as Australians headed to the polls.
Currently, consumer sentiment stands 7 points higher than during the same period last year and is 1.3 points above the 2025 weekly average of 86.2.
The most significant improvements were seen in perceptions of current family finances and medium-term economic outlook.
Nearly one in five Australians (19%, up 4 percentage points) reported that their families are financially better off than they were a year ago, while 42% (down 5 percentage points) said they are worse off. This marks the lowest level for the ‘worse off’ sentiment in over two years, dating back to September 2022.
Meanwhile, longer-term sentiment toward the Australian economy also improved. This week, 13% of Australians (up 2 percentage points) said they expect ‘good times’ for the economy over the next five years, while 19% (down 4 percentage points) anticipate ‘bad times,’ indicating a more optimistic outlook compared to previous weeks.
There was also an improved outlook for personal finances over the next year, with 28% of respondents (up 2 percentage points) expecting their family to be ‘better off’ financially this time next year, while 27% (down 3 percentage points) expect to be ‘worse off.’
However, the overall confidence boost was tempered by a decline in buying intentions. Only 20% of Australians (down 2 percentage points) believe now is a ‘good time to buy’ major household items, while 38% (unchanged) feel it is a ‘bad time to buy.
Views on the Australian economy over the next year remained largely unchanged this week, with 10% (unchanged) expecting ‘good times’ for the economy in the next 12 months, while 27% (down 2 percentage points) anticipate ‘bad times.’
“Households are feeling more confident in their personal finances and economic conditions, which may reflect the improvement in market sentiment,” stated ANZ economist Sophia Angala.
“Solid US personal spending data in Q1 has helped global sentiment, and market reactions to global uncertainty have eased overall a month after US tariff announcements.”
Angala noted that the drop in weekly inflation expectations comes after last week’s inflation report, which revealed that Australia’s trimmed mean inflation, the Reserve Bank of Australia’s (RBA) preferred measure of core inflation, fell to its lowest level since the fourth quarter of 2021 on an annual basis.
“Given moderating inflation over the past two quarters and the downside risks to domestic growth from trade uncertainty, we expect the RBA to cut the cash rate by 25bp at its May meeting,” Angala added.