ANZ-Roy Morgan Consumer Confidence was up 2.3 points to 78.1 this week.
Despite the increase, the index has now spent a record 26 straight weeks below the mark of 80.
Consumer confidence is now 6.9 points below the same week a year ago and is in line with the 2023 weekly average of 78.1.
The small increase in consumer confidence continues a trend over the last month with the index oscillating in a narrow band of 3.5 points between 75-78.5.
The index has now spent six straight weeks in this band averaging 76.8 since mid-July.
Consumer confidence was up in the three largest states of New South Wales, Victoria and Queensland, but down slightly in both Western Australia and South Australia.
Driving the improvement in the index this week were positive moves in sentiment related to both personal finances and the fortunes of the Australian economy over the next year, ANZ and Roy Morgan noted.
“Retail sales data for July and ANZ-observed spending in August were also weak,” ANZ senior economist Adelaide Timbrell said. “The confidence impact of falling real wages due to inflation continues to offset the positives in the economy and is likely the main factor that has kept the index in very weak territory for the past six months.
“The resilient labour market and the beginning of what we think will be an extended pause from the RBA is yet to result in a confidence level above 80, which was achieved even during Delta lockdowns in 2021.”