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ANZ-Roy Morgan Consumer Confidence is virtually unchanged at 90.5 after RBA increases interest rates as expected
May 10 2022
- Finding No.
This weekly ANZ-Roy Morgan Consumer Confidence Rating is based on 1,498 online and telephone interviews conducted Australia-wide with men and women aged 14 during the week of May 2-8, 2022.
ANZ-Roy Morgan Consumer Confidence was virtually unchanged at 90.5 this week, down only 0.2pts after the RBA increased interest rates as widely expected following the higher-than-expected ABS CPI print a week earlier. Consumer Confidence had dropped significantly last week after the ABS CPI Inflation print with the expectation the RBA would increase interest rates.
The small drop means Consumer Confidence is again at its lowest since Victoria’s second wave of COVID-19 in August 2020 and is a significant 21.1pts below the same week a year ago, May 8/9, 2021 (111.6). The measure is now 6.8pts below the 2022 weekly average of 97.3.
Consumer Confidence by housing status is again revealing with the measure down for the second straight week, by 4.6pts, for those who are ‘paying off their home’. In contrast, Consumer Confidence rose this week for those who ‘own their home’ (up 1.3pts) and was also up for those who are renting (up 2.6pts).
A look at the different States shows there was no uniform movement in Consumer Confidence this week with the measure increasing slightly in New South Wales and South Australia, but down slightly in Victoria, Queensland and Western Australia.
A look at the index shows it is measures related to the performance of the Australian economy and also whether now is a ‘good/bad time to buy major household items’ that were down this week.
Current financial conditions
Now just over a quarter of Australians, 27% (up 3ppts) say their families are ‘better off’ financially than this time last year compared to 36% (down 1ppt), that say their families are ‘worse off’ financially.
Future financial conditions
- Looking forward, under a third of Australians, 32% (up 1ppt) expect their family to be ‘better off’ financially this time next year compared to 28% (up 1ppt), that expect to be ‘worse off’ financially (the highest figure for this indicator for over two years since April 2020).
Current economic conditions
- Now only 10% (unchanged), of Australians expect ‘good times’ for the Australian economy over the next twelve months compared to 31% (up 1ppt), that expect ‘bad times’.
Future economic conditions
- In the longer term, just 13% (down 2ppts), of Australians are expecting ‘good times’ for the economy over the next five years (the lowest figure for this indicator for over two years since April 2020) compared to 19% (up 1ppt) expecting ‘bad times’.
Time to buy a major household item
- The prospect of interest rates increasing has led to buying intentions deteriorating this week, with 27% (down 1ppt) of Australians, saying now is a ‘good time to buy’ major household items (the lowest figure for this indicator for over two years since April 2020) while 43% (up 1ppt) say now is a ‘bad time to buy’.
ANZ Head of Australian Economics, David Plank, commented:
Consumer confidence dropped by just 0.2% last week after a 6.0% drop the week before. This suggests that consumers had anticipated the likely increase in interest rates by the RBA. Still, the rise was not entirely without impact. Confidence among people who are ‘paying off their home loan’ dropped by 5.0%, reinforcing the 9.6% drop in the previous week. This was partially offset by the increase in confidence for those who already own their home or are renting by 1.3% and 2.6% respectively. Household inflation expectations dropped 0.2ppt to 5.1% despite a slight increase in petrol prices last week."
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.
You can also view our monitor of Monthly Australian Unemployment & Under-employment Estimates.
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