According to the ANZ Roy Morgan Consumer Confidence Index, confidence was up 2.1 per cent, following the previous week’s 3.5 per cent.
The new figures coincide with Scott Morrison replacing Malcolm Turnbull as Prime Minister, resulting in a cabinet reshuffle and a string of resignations.
ANZ’s head of Australian economics David Plank said it was a good sign.
“It is very encouraging to see confidence recover quite strongly after a sharp slide in the previous week,” Mr Plank said.
“We were concerned that the political turmoil in Canberra might deal another blow to consumer sentiment, but it appears the resolution of the leadership crisis has provided some relief – even if it hasn’t provided the Coalition with a boost in the political polls.”
The survey showed households’ views about current financial conditions improving 1.2 per cent and sentiment towards future financial conditions jumping 3.1 per cent, partly reversing the 7.6 per cent slide the previous week.
However, it wasn’t all good news. Ongoing falls in the “time to buy a household item” sub-index were a concern, slipping 2.2 per cent to below the long term average.
“Despite the tick up in headline confidence, households remain pessimistic about purchasing large household items,” Mr Plank said.
“This subindex has fallen sharply from its recent high in June, and now sits well below its long term average.
“Sluggish wage growth, high levels of debt and decreasing house prices are likely constraining sentiment in this regard.”