Economic gloom abounds as Aussies expect more hip pocket pain
Australian confidence in the economy has plummeted with just six per cent of people expecting “good times” in the coming year, according to a new poll.
The ANZ-Roy Morgan consumer confidence measure dropped 4.4 points to 71.2 in late July, its lowest level in mid-June.
Consumer confidence is at a low ebb. Getty
That’s 15.5 points lower than this time last year, and 0.6 points below the 2026 weekly confidence average of 71.8.
“The recent escalation of conflict in the Middle East, renewed inflation risks and a gradual easing in labour market conditions in June may all have weighed on confidence,” ANZ economist Sophie Angala said.
That lack of confidence was felt nationwide and across all “indices” - such as personal financial outlooks, Australia’s economic performance, and current buying conditions.
Just 16 per cent of Australians said their families were “better off” financially than this time last year, compared to 52 per cent who said they were worse off.
And 43 per cent expected to be worse off this time next year, compared to 20 per cent who expected improvement.
Respondents’ long-term economic outlooks were also pessimistic, with just 7 per cent expecting good times for the economy in the next five years, compared to 30 per cent who expected things to deteriorate.
And just 17 per cent of people said now is a good time to make major household purchases, compared to 44 per cent who thought the opposite.
Angala said expectations of increased inflation were also at their highest since mid-June, ahead of the Consumer Price Index update expected today.
“We forecast trimmed mean (underlying) inflation to rise 3.7 per cent year on year, a touch below the RBA’s forecast of 3.8 per cent year on year,” she said.
“Lower-than-expected inflation and the broader slowing of activity should see the RBA cash rate remain at 4.35 per cent at the August meeting.
“However, a hike cannot be ruled out, either in August or November.”
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