SYDNEY
Australian consumer confidence collapsed to 67.1 in early October, down 3.4 points from the prior period and marking the lowest level since late May, as the Reserve Bank of Australia's latest rate increase to 4.6 percent—a 15-year high—hammered household sentiment across all major cohorts.
The index now sits 18 points below the 85.1 reading from a year ago and 5.1 points beneath the 2026 weekly average of 72.2. This represents the tenth-lowest reading since the survey began in 1973.
Confidence declined across New South Wales, Victoria, Queensland, and Western Australia. Only South Australia posted a modest gain.
The deterioration was sharpest among those most exposed to higher borrowing costs. Mortgage holders saw confidence drop 2.6 points, renters fell 6.1 points (though remain the most confident cohort), and outright homeowners declined 2.1 points.
Across all households, only 15 percent reported being financially better off than a year ago, down 2 percentage points. Fifty-six percent said they were worse off, up 6 percentage points.
Near-term economic expectations turned bleaker. Just 5 percent expected "good times" in the next year, down 1 percentage point, while 46 percent forecast "bad times," up 2 percentage points. The five-year outlook remained negative: 7 percent expect good times versus 32 percent expecting bad times.
Buying intentions for major household items fell further. Only 14 percent consider it a good time to purchase, down 2 percentage points, while 47 percent now view it as a bad time, up 3 percentage points.
Confidence in current financial conditions, future financial conditions, and short-term economic conditions all fell to their lowest levels since late May.
ANZ forecasts Q3 trimmed mean inflation will exceed RBA projections, making another rate hike in November more likely than not. A November move would lift the cash rate to 4.85 percent—its highest level since 2008—and likely further constrain household spending.
