Consumer confidence is stabilising as households become more optimistic about their finances.
The ANZ/Roy Morgan weekly consumer confidence index rose 0.7 per cent in the week ending September 28.
The index has stabilised around its long-run average in the past two months after a sharp decline around the time of the federal budget in May.
ANZ chief economist Warren Hogan is confident that consumer spending will improve in the coming months now that people are feeling more confident.
"The trajectory of consumer confidence remains key for the recovery in consumer spending, which in turn will be supported by gains in household wealth on the one hand but constrained by subdued household income growth on the other hand," he said.
While consumers are more satisfied about their own situation, there is still nervousness about the economy.
The index that measures expectations about economic conditions for the coming year and the next five years fell one per cent and 6.3 per cent respectively last week.
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