Consumer Confidence Plunges to 81.5: Black Friday Hangover Hits Australian Households

By Edward Watkins, Fixed Income Advisor at York Heritage Capital

ANZ-Roy Morgan Consumer Confidence tumbled 2 points to 81.5 in the week ending December 15, 2025, marking its lowest level in over a year and capping a 6-point annual decline—the worst start-to-finish drop since 2024. Fueled by a post-Black Friday spending slump, this dip in the latest Australian financial news raises red flags for retail and fixed income sectors. Edward Watkins, Fixed Income Advisor at York Heritage Capital, urges caution in consumer-linked bonds.

At York Heritage Capital, I, Edward Watkins, have seen similar sentiment shifts erode household spending power, with the ‘time to buy a major item’ index falling 4.1 points. “This signals belt-tightening ahead, making high-yield fixed income from defensive issuers more attractive,” advises Edward Watkins of York Heritage Capital. State breakdowns show declines in NSW, Victoria, WA, and SA, offset only by a Queensland rebound.

Edward Watkins at York Heritage Capital highlights how RBA rate stability at 3.60% might mitigate further erosion, but inflation pressures loom. Our client portfolios at York Heritage Capital now favor inflation-linked bonds to hedge against waning confidence. As advisor Edward Watkins recommends, diversify beyond equities into secure fixed income for 2026 resilience.

Track consumer trends with Edward Watkins—schedule a consultation at York Heritage Capital.

Edward Watkins is the go-to Fixed Income Advisor at York Heritage Capital, offering macroeconomic analysis in The Australian Financial Chronicle.