Australian consumer confidence edged higher last week, according to the latest ANZ-Roy Morgan Australian Consumer Confidence report released on Tuesday, though the index remains well below its long-run average.
The weekly index rose 2.3 points to 66.4 points for the week of May 11–17, with the four-week moving average lifting 0.5 points to the same level. Despite the improvement across all subindices, the headline figure remains well below the monthly average of 108.8 points recorded since 1990.
ANZ economist Sophia Angala said the gains coincided with two significant economic releases.
"This occurred alongside the release of Australia's Budget 2026–27 and Q1 wages data," she said.
Angala noted the index nevertheless remains deeply depressed.
"Confidence remains around historical lows since the series began in 1973," she said.
The result echoes a broader pattern of subdued household sentiment this year. As Australian Broker reported in April, business confidence has stabilised while consumers have remained deeply pessimistic under the combined weight of higher fuel prices and mortgage rates.
The report showed gains across all categories measured. Current financial conditions – reflecting how Australians assess their finances compared with a year ago – rose 2.1 points, while the outlook for financial conditions over the next 12 months gained 1.0 point. Short-term economic confidence for the coming year climbed 2.2 points, and medium-term economic confidence over the next five years rose 2.4 points. The subindex measuring whether it is a good time to purchase a major household item recorded the largest gain, rising 3.8 points.
Weekly inflation expectations eased 0.4 percentage points to 6.0%, their lowest reading since early March. The four-week moving average for inflation expectations fell 0.3 percentage points to 6.4%.
Despite the decline, inflation expectations remain elevated. Angala said the persistence of price pressures reflects recent fuel costs and the risk of broader flow-on effects.
"The still-elevated level of inflation expectations likely reflects higher fuel prices over recent months and some risk of second-round effects (where higher input costs, such as fuel or fertiliser, flow through to goods and services broadly)," she said.
For mortgage brokers, the prolonged slump in confidence underscores the importance of guiding clients through uncertainty. Research published earlier this year found that 72% of Australians had avoided making financial decisions at some point because the information felt too complex – a gap brokers are increasingly being called upon to fill.
The weekly ANZ-Roy Morgan Australian Consumer Confidence survey is based on 1,025 interviews conducted online and by telephone during the week to Sunday.
Historical data in the report showed confidence declined sharply from early 2026, falling from 80.5 points in February to a low of 58.8 points in late March before gradually recovering through April and into May. That recovery in sentiment, if sustained, could provide a modest tailwind for lending activity – mortgage demand rose 13.3% year-on-year in October 2025, driven in part by improved consumer confidence following rate cuts earlier that year.
