Consumer confidence has remained static with the Reserve Bank rate cut's boost pulled back by reaction to the federal budget.
The ANZ-Roy Morgan consumer confidence index was unchanged in the week ending May 8, after rising the previous week.
ANZ head of Australian economics Felicity Emmett said it's likely the RBA's 25 basis point cash rate cut to 1.75 per cent last Tuesday had boosted overall confidence.
"Typically a cut in the RBA's cash rate tends to lift confidence, and on its own we expect that was a positive factor for confidence given the lift in consumers' views towards buying a household item," she said in a statement.
However, she said, the federal budget, handed down a few hours after the Tuesday afternoon rate cut announcement, had weighed on confidence.
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Ms Emmett noted a Fairfax/Ipsos poll showed that 46 per cent of households disapproved of the budget while only 39 per cent approved.
"While this is a better reaction than the one to the 2014 budget, the lack of traction from the budget would be disappointing given the government is now in election mode," she said.
Consumers' views about their finances now compared to one year ago were flat, while they were less optimistic about their financial outlook.
They were also less optimistic about wider economic conditions next year, while their views about the economic conditions in the next five years were flat.
The only area to gain was the subindex on whether now is a good time to buy a major household item, which rose 2.2 per cent.
Ms Emmett said confidence remained above the long-run average, but consumers would be watching economic data and the RBA's next move.
"We expect it to remain sensitive towards developments in the domestic data and policy front in the near term," she added.
