ANZ-Roy Morgan Consumer Confidence rose 3.5 points to 67.8 this week, but the index remains among the lowest readings on record.
Consumer confidence is a large 15.6 points lower than a year ago, and is now 4.8 points below the 2026 weekly average of 72.6.
While this week's result is the highest since mid-March, it remains the seventh lowest consumer confidence reading in the history of the index, which stretches back over 50 years to 1972.
The week's improvement was driven primarily by a more positive outlook on economic conditions rather than personal finances.
Now 17 per cent (up 2ppts) of Australians say their families are 'better off' financially than this time last year, compared to a majority of 54 per cent (down 3ppts) that say their families are 'worse off'.
Net views on personal finances over the next year were largely unchanged, with 20 per cent (down 1ppt) of respondents expecting their family will be 'better off' financially this time next year, while 44 per cent (down 1ppt) expect to be 'worse off'.
Economic sentiment showed some improvement. Some 4 per cent (unchanged) of Australians expect 'good times' for the economy over the next year, compared to 48 per cent (down 5ppts) who expect 'bad times'. Over the next five years, 7 per cent (up 1ppt) expect 'good times', compared to 29 per cent (up 4ppts) expecting 'bad times'.
Net buying intentions improved marginally, with 17 per cent (up 2ppts) of respondents saying now is a 'good time to buy' major household items, compared to 51 per cent (unchanged) that say now is a 'bad time to buy.'
ANZ economist Sophia Angala said the lift was led by improving confidence in economic conditions.
"Weekly inflation expectations fell to 6.6 per cent last week, its lowest rate since early March,” Angala said. We continue to expect the RBA to increase the cash rate by 25bp at its May meeting."
The Q1 CPI release is due to be released on April 29, with ANZ forecasting headline inflation to have risen 1.4 per cent quarter-on-quarter, partly reflecting the impact of higher fuel prices in March.
An analysis by state shows consumer confidence improved significantly in Victoria and South Australia, was up slightly in New South Wales and Queensland, but fell in Western Australia.