Consumer confidence has picked up for the first time since the federal government began releasing details of spending cuts in its budget.
Confidence rose 2.9 per cent in the week ending June 1, according to the ANZ-Roy Morgan consumer confidence index, the first increase since mid-April.
But the bounce in confidence came from optimism about economic conditions expected next year, and consumers remain more pessimistic about their financial situation now compared to a year ago.
ANZ said consumer spending was expected to improve this year, but the impact on confidence of the budget could affect the speed of that recovery.
"While confidence is still down a sharp 12 per cent from six weeks ago, the modest bounce back in confidence last week is a tentative, positive sign," ANZ senior economist Justin Fabo said.
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