Australian Consumer Confidence Recovers Slightly, Remains Historically Low

Australian consumer sentiment has recorded a marginal improvement, as households show slightly more optimism regarding their personal financial positions and the trajectory of the national economy. The ANZ-Roy Morgan Consumer Confidence index recorded an increase of 2.3 points, lifting the headline figure to 66.4 points for the week concluding May 18, 2026.

While this recovery marks a break from recent declines, the reading is currently positioned as the eighth lowest in the history of the statistical series, which first began in 1973. The modest uptick was observed across all subindices that comprise the overall measure, driven primarily by a reduction in immediate concerns regarding the broader Australian economic landscape and a slight rise in individual financial confidence. Despite these gains, the index remains well below long-term averages, indicating that the Australian public continues to navigate a period of significant financial restraint.

Historical Context and Recent Trends

Despite the recent weekly gain, consumer sentiment in Australia remains significantly depressed when compared to long-term historical averages and previous years. The current level of 66.4 points sits 22.4 points below the 88.8 points recorded during the same period last year, specifically the week of May 12-18, 2025. This substantial year-on-year gap highlights the persistent pressure on Australian households over the past twelve months and suggests that the recent recovery has a considerable way to go before reaching the levels seen in early 2025.

Furthermore, the current reading is 5.2 points lower than the 2026 weekly average of 71.6 points. Recent weeks have seen the index fluctuate near historic lows. For the week ending May 11, 2026, the index fell to 64.1 points, which represented the fourth lowest reading in the survey’s history. This followed a level of 67.2 points on May 5, 2026, which was the seventh lowest on record. Earlier in the comparison period, specifically the week ending May 4, 2025, the index was considerably higher at 87.5 points.

The consistent placement of recent results within the bottom ten readings since 1973 suggests that while a minor recovery has occurred, the overall environment for consumers remains challenging. The index is a critical barometer for household spending intentions, and such prolonged low levels of confidence typically correlate with reduced economic activity and cautious consumer behaviour across the country.

Household Financial Sentiment

The breakdown of individual sentiment reveals a significant divide in how Australians perceive their current and future financial health. Currently, only 15% of Australians believe their families are financially better off than they were a year ago. In contrast, a majority of 55% of respondents report that their financial situation has deteriorated over the last twelve months. This negative sentiment reflects the ongoing impact of living costs and economic conditions on household budgets.