A drop in the unemployment rate from its highest level in a decade has inspired cautious consumers to be a little more upbeat.
But they continue to worry about how the economy will fare in the coming year even though interest rates are at a record low, an ANZ-Roy Morgan weekly barometer of consumer sentiment has found.
"While rising house prices, relatively low petrol prices and low interest rates may be helping consumers feel more positive about their own finances, households remain concerned with the economic outlook in an environment of low wage growth, government budgetary strains and a soft labour market," ANZ chief economist Warren Hogan said.
The weekly confidence reading rose by half a percentage point to 110.8 points.
This occurred after official data showed the jobless rate in February fell to 6.3 per cent, from January's 12-year high of 6.4 per cent.
But the consumer sentiment reading was still below the survey's 25-year average.
The poll of 1,000 people, taken last weekend, also showed consumers were more worried about the economy in the year ahead, despite being more optimistic about their own personal finances.
They were marginally more upbeat about economic conditions for the next five years.
A fall in the Australian dollar to 76 US cents is tipped to make imported goods and petrol more expensive but consumers don't appear to be worried about a weaker currency.
"The recent weakness in the Australian dollar also appears to have had little impact on confidence, one way or the other," Mr Hogan said.
ANZ expects the Reserve Bank of Australia to cut its cash rate in April, from a current record low of 2.25 per cent, and keep it on hold until 2017 to boost the economy.
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