Consumer index up

CONSUMER confidence crept higher ahead of the federal budget, signalling a possible improvement in the job market.

The ANZ-Roy Morgan Consumer Confidence Index climbed 0.9 points this week to 112.3 points, further above the 100-point level separating upbeat from pessimistic sentiment.

ANZ head of Australian economics David Plank said it was encouraging to see stabilising consumer confidence after a period of decline.

“This stabilisation may be a sign of an improving labour market,” he said.

But, he said, low wages growth and high levels of debt continue to put pressure on householders.

“The outlook for spending remains under pressure as households adjust to this reality,” Mr Plank said.