Lowering fuel prices sees consumer confidence rebound

Consumer confidence lifted to 91.3 points in June from 86.5 in May

A net negative 11 percent of households think it is a good time to make a major purchase

A net 10 percent expect to be better off this time next year, down from last month's net 12 percent

A net negative 23 percent of consumers feel worse off now, up from negative 25 percent last month

Consumers expect inflation to be 4.6 percent over the next two years, down from 5.3 percent in May

Consumer confidence has rebounded to levels seen before the latest Middle East conflict, as lower fuel prices helped lift household sentiment.

The ANZ-Roy Morgan Consumer Confidence Index rose 4.8 points in June to 91.3, returning to where it was in March.

But it remained 16 points below its January peak, while any reading below 100 still pointed to pessimism.

ANZ chief economist Sharon Zollner said the rebound appeared closely linked to falling fuel prices.

"It's pretty clear that's what caused confidence to plummet, and that's what's causing it to bounce back," she said.

Confidence had now regained almost half of its fall, with both current conditions and future expectations lifting from their recent lows.

Households remained cautious about their own finances, with a net 10 percent expecting to be better off in a year's time, down slightly from May but still well above April's low.

There were also signs consumers may be becoming less wary about spending.

The net proportion of households saying it was a bad time to buy a major household item improved by 9 points to minus 11 percent, a measure ANZ said was the best retail indicator and consistent with recovering retail sales.

Inflation expectations also eased, with two-year-ahead expectations falling from 5.3 percent to 4.6 percent, returning to levels seen before the recent oil price spike.

The survey showed people were also a little less gloomy about the broader economy.

Expectations for economic conditions over the next 12 months improved from minus 36 percent to minus 23 percent, the strongest reading since February.

ANZ said June card spending data would show whether consumers were "putting their money where their mouths are".