Consumer confidence has bounded to a sixteen-week high, with householders feeling positive about the state of the economy and a fall in the unemployment rate, new figures show.
The latest ANZ-Roy Morgan Consumer Confidence Index shows a 1.4 per cent rise, to 116.4, driven by consumers' expectations for the health of the economy and the success of the 'Yes' vote in the marriage equality national vote.
ANZ senior economist Felicity Emmett said the improved sentiment should continue in the short term due to an upswing in views towards current and future economic conditions.
The index showed a 2.9 and a 2 per cent gain in peoples' confidence about the current and future health of the economy, respectively, to multi-week highs.
The increased optimism was likely spurred by the ongoing strengthening in the labour market and the fall in the unemployment rate to 5.4 per cent last week, Ms Emmett said.
"The outlook for employment in the near term remains positive, consistent with elevated business conditions and leading labour market indicators, and this should continue to broadly support confidence," Ms Emmett said.
However, weaker-than-expected wage growth, coupled with high household debt and slowing house price growth, is expected to weigh on consumers' minds in the long term.
"Together, these factors are likely to cap the extent of improvement in sentiment," Ms Emmett said.
Householders' views about the state of their current finances fell 0.4 per cent, its third consecutive fall.
But, despite their pessimism, consumers were more confident about the state of their future finances for the first time in four weeks - up three per cent.
It also didn't dent households' belief that now was a good time to buy major household items, following last week's one per cent gain.
