Consumers appear to have shaken off their budget cut woes, with confidence levels enjoying a solid rebound.
ANZ-Roy Morgan’s latest survey found consumer confidence levels are now back to pretty much where they were before worries set in about the government’s planned spending cuts.
Consumer confidence rose 4.4 per cent in the past week, the survey found.
ANZ senior economist Justin Fabo said confidence levels had risen eight per cent in the past two weeks, aided by parliament’s repeal of the carbon tax and other Senate ructions around government policies.
“This is a very encouraging sign that the ‘sticker shock’ from the budget was temporary,” he said.
“While debate in the Senate around the slated budget policies could be important for the future trajectory of consumer confidence, soft income growth is likely to be a more important driver of the consumer spending outlook.”