The ANZ-Roy Morgan Consumer Confidence Index rose by 6 points in November, reaching slightly above 98.
Despite the increase, a score under 100 signifies there are still more pessimists than optimists.
“It’s good to see a decent lift in consumer confidence this month, though it is yet to break out of recent ranges,” ANZ chief economist Sharon Zollner said.
“Although it’s early days in terms of the economic recovery, this is not the only indicator suggesting that things are looking up for consumers.”
A net 21% of respondents anticipated being better off a year from now.
“Consumer arrears have been declining, employment has returned to modest growth, and retailers are reporting improved activity,” Zollner said.
A net 9% of respondents believed it was an unfavourable time to purchase a major household item, indicating continued caution among consumers.
The ‘good time to buy’ indicator has remained negative for over four years.
Zollner highlighted declining consumer arrears, modest employment growth returning, and retailers noting stronger activity.
“Our card spending data shows a return to growth across a broad range of discretionary categories, though overall spending levels are still very subdued compared to the Covid-era boom,” she added.