Consumer confidence is failing to make much of a recovery after suffering a blow from the tough federal budget.
The ANZ-Roy Morgan consumer confidence index has stayed steady for a second week.
The index is still 14 points below where it was in mid-April, when leaks about budget cuts and tax increases started to appear before budget night on May 13.
However, ANZ said that fall consumer confidence could be abating.
"The pace of recovery and the level that confidence eventually settles at will be important factors in determining the likely impact on consumer spending," ANZ said in a statement.
ANZ is sticking by its forecast that consumer spending will improve later this year but said the impact of the budget will weigh on confidence in the near term.
A separate survey released on Tuesday found that business confidence had not been affected by the planned budget cuts.
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