Consumer confidence has bounced as rising house prices and low interest rates outweigh concerns about growing unemployment.
Consumer confidence took a hit in early August amid gloomy news about Australia's jobless rate rising to 6.4 per cent and geopolitical concerns in Ukraine and the Middle East.
But confidence is now back above long-run average levels, rebounding 0.9 per cent to 113.5 last week, according to the ANZ/Roy Morgan weekly consumer confidence survey on Tuesday.
Confidence is continuing to recover from the shock rise in joblessness, supported by low interest rates and rising house prices, ANZ chief economist Warren Hogan said.
He said there were encouraging signs for consumer spending in coming months.
"Signs that consumer confidence is bouncing back, combined with strengthening business surveys, gives us more confidence that the non-mining recovery remains on track," Mr Hogan said.
"We expect consumer spending to remain moderate in 2014 before improving in 2015."
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