ANZ-Roy Morgan Consumer Confidence was up 0.6 points to 78.7 this week.
It comes as the Reserve Bank of Australia held interest rates at 4.10 per cent for the third consecutive month.
Despite the slight lift, the index has now spent an all-time record 27 straight weeks below the mark of 80.
Consumer confidence is now 7.4 points below the same week a year ago but has just passed the 2023 weekly average of 78.1.
The second consecutive weekly increase in consumer confidence breaks the trend of the last month, although Roy Morgan and ANZ noted the index remains within a narrow band of 4 points (75-79) since mid-July.
Long-term fortunes of the economy and improved buying intentions drove the slight increase this week, with fewer people saying now is a ‘bad time to buy’ major household items.
Now a fifth of Australians (20% - up 1ppt) say their families are ‘better off’ financially than this time last year compared to 53% (up 1ppt) that say their families are ‘worse off’ financially.
Looking forward, 31% (down 1ppt) expect their family to be ‘better off’ financially this time next year while 36% (up 2ppts) expect to be ‘worse off’.
Only 7% of Australians expect ‘good times’ for the Australian economy over the next twelve months compared to 37% (up 1ppt) that expect ‘bad times’.
Over the next five years, 12% (up 1ppt) of Australians expect ‘good times’ for the economy, compared to 19% (down 3ppts) expecting ‘bad times’.
Meanwhile, 21% (unchanged) of Australians now say it is a ‘good time to buy’ major household items while 52% (down 3ppts) say now is a ‘bad time to buy’.
“The encouraging July monthly CPI indicator print which showed falling annual inflation likely supported the increase in confidence,” ANZ senior economist Adelaide Timbrell said. “In particular, government rebates which reduced the net price increase of electricity from 19.2% m/m to 6% m/m may have helped household financial confidence.
“The start of what we think is an extended pause from the RBA could also be flowing through. The four-week average confidence level for outright owners is steadily increasing while those paying off their mortgage are seeing confidence stagnate at a lower level than renters and outright owners.”