Consumer confidence is holding up at "decent but not spectacular" levels in the latest Westpac McDermott Miller quarterly survey.
The survey's index is 111, unchanged from December and in line with its historical average. Any level above 100 indicates more optimists than pessimists.
"Households' expectations of the future slipped back slightly but their perceptions of current conditions have continued to improve," Westpac economist Felix Delbruck said.
Caution among consumers was diminishing, he said.
The net balance of respondents who say they are better off financially than a year ago is the highest since late 2007, though still well below the levels prevailing during the mid-2000s boom. "And their professed willingness to spend on big-ticket items is also close to post-2006 peaks," he said. "Historically these are the parts of the survey that have been most relevant to actual spending."