ANZ-Roy Morgan Consumer Confidence rose 2.3% this week, largely due to the drop in petrol prices. Confidence had fallen for three straight weeks before the increase. However, despite the weekly increase the index is still a significant 14.3% below the same week a year ago.

Consumers were less confident about current financial conditions although they were slightly more confidence about future prospects. The ‘time to buy a major household index’ improved slightly.

ANZ head of Australian Economics, David Plank, attributed the sharp drop in petrol prices to much of the lift in sentiment, although the focus on relieving cost of living pressures in the Federal Budget may also have played a part. “The cut to petrol excise announced in the Budget may, depending on volatile oil prices, see petrol prices drop further in the coming weeks. This could potentially lift consumer sentiment further,” he said.