Consumer confidence has lifted to a 32-month high in the ANZ Roy Morgan survey as people take a more optimistic view of their own finances and of the economy.
ANZ economist Mark Smith said the bank's composite indicator, which draws on its consumer and business sentiment surveys to give a better guide to economic prospects than either survey alone, was flagging 2.6 per cent growth by mid-year.
"So far so good, but a sustained lift in confidence will ultimately depend on healthier labour market conditions," he said.
Consumer confidence usually declines in February as back-to-work reality sets in, but this time the headline index rose 2.7 points to 121.