Consumer sentiment weakened slightly in April, amid a flurry of negative news on housing affordability, unemployment and global politics.
The Westpac-Melbourne Institute Index of Consumer Sentiment fell by less than a point to 99 points in April, remaining below the 100 point level that indicates optimists outnumber pessimists.
"This is a surprising but welcome result," Westpac chief economist Bill Evans said.
Housing affordability and potential price bubbles were under the spotlight in April, while banks increased interest rates for some mortgage borrowers, he said.
The state of the labour market was disappointing, commodities prices - including key export iron ore - significantly weakened, and markets were wary of rising tensions in the Middle East.
"Arguably these factors could have been expected to produce a marked fall in confidence, particularly around the economic outlook," Mr Evans said.
The survey showed consumers have become more optimistic about family finances, though expectations for the economy declined.
Confidence in the labour market and housing market, and consumer attitudes towards spending also deteriorated in April, the survey showed.
Westpac expects the Reserve Bank of Australia to keep the cash rate on hold at its next meeting in May, given concerns about excessive household leverage and rising house prices.
Westpac also warned any significant shocks in the federal budget would likely cause considerable damage to consumer confidence.
