Australians are still saving their pennies, despite feeling more upbeat about their household finances than they did a year ago.
Consumer confidence is improving but people remain cautious, ANZ chief economist Warren Hogan says.
The ANZ/Roy Morgan consumer confidence survey on Tuesday showed that confidence was up 1.1 per cent last week, sitting around its long-run average.
The survey found people felt more upbeat about their household financial situation than they did a year ago and had positive expectations for the year ahead.
But, Mr Hogan said, Australians were saving rather than spending, although rising house prices could encourage people to splash out.
"Concerns about the economic outlook continue to weigh on consumer confidence and are likely contributing to cautious consumer behaviour and the elevated household saving rate," Mr Hogan said.
"Nonetheless, we expect that the wealth effect from higher house prices still has further to run and will allow households to reduce their savings modestly.
"This will provide some offset to soft household income growth over coming quarters."
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