Australian Consumer Confidence Highest Since March Despite Headwinds

By James Glynn

SYDNEY--Australian consumer confidence returned to its highest since early March last week despite ongoing weakness in house prices and the continued threat of higher interest rates.

Consumer confidence rose 1.5 points last week to 76.5 points, according to a survey by the Australia and New Zealand Banking Group and pollster Roy Morgan.

Despite a substantial retreat in house prices over recent months, the pickup in confidence was driven by an improvement in confidence around the financial situation for households, with this subindex rising to its highest level since February, said ANZ economist Madeline Dunk.

The rise coincided with a decision by the Reserve Bank of Australia to keep interest rates on hold.

Still, RBA Governor Michele Bullock warned that further interest-rate increases remained "quite possible."

Confidence among renters rose to its highest level since January, according to the data.

Over the past few weeks, a significant gap has opened up between rising confidence among renters and falling confidence among those paying off a mortgage.

Compared to households who own their home outright, confidence among renters is at its strongest since 2022, the survey showed.

The softer confidence amongst homeowners may be linked to the recent downturn in the housing market, Dunk said.

ANZ expects house prices to decline 10.6% from their recent peak over the next year as higher interest rates and changes to tax laws in the area of investment properties cools demand.

The weekly ANZ-Roy Morgan Australian consumer confidence rating is based on 1,048 interviews conducted online and over the telephone during the week to Sunday.

Write to James Glynn at james.glynn@wsj.com

(END) Dow Jones Newswires

August 17, 2026 20:14 ET (00:14 GMT)