ANZ-Roy Morgan Consumer Confidence up 1.1pts to 93.5 as new cases of COVID-19 continue decline and restrictions ease in Country Victoria

ANZ-Roy Morgan Consumer Confidence increased 1.1pts to 93.5 on September 19/20, 2020 and is now 16.6pts lower than a year ago on the comparable weekend of September 21/22, 2019 (110.1) and just 0.2pts below the 2020 weekly average of 93.7.

Consumer Confidence has now increased for three straight weeks and is up 3.3pts since hitting a low of 90.2 in late August. Driving this week’s increase was more confidence about the economic prospects for Australia over the next year and over the longer-term of the next five years.

Current financial conditions

• Now 23% (down 2ppts) of Australians say their families are ‘better off’ financially than this time last year and 35% (up 1ppt) say their families are ‘worse off’ financially.

Future financial conditions

• In addition, 34% (unchanged) of Australians expect their family to be ‘better off’ financially this time next year compared to 19% (down 1ppt) that expect to be ‘worse off’ financially.

Current economic conditions

• Although improving this week only 7% (up 1ppt) of Australians expect ‘good times’ for the Australian economy over the next 12 months while 43% (down 4ppts), expect ‘bad times’ (the lowest figure for this indicator for three months since June 20/21).

Future financial conditions

• In the longer term, nearly a fifth, 19% (up 2ppts) of Australians are expecting ‘good times’ for the Australian economy over the next five years compared to 18% (down 3ppts) expecting ‘bad times’.

Time to buy a major household item

• Australians are split on whether now is the time to purchase major household items with a decreasing proportion of Australians, 35% (down 2ppts), saying now is a ‘good time to buy’ major household items, while 35% (unchanged), say now is a ‘bad time to buy’.

“Consumer confidence has risen for the third week in a row with the most notable improvement coming from Melbourne and the rest of Victoria. Sentiment in Melbourne is still well below neutral, but consumers there are now a touch more confident than those in Sydney. Consumer confidence in the rest of Victoria rose above the neutral 100 level for the first time since early March. The success in getting the COVID-19 new case numbers down is clearly having a big impact on confidence in Victoria. The positive surprise in the August labour market data may have bolstered sentiment more generally, though it is worth pointing out that confidence is comparable to the level reached during the depths of the GFC.”