Consumer confidence has lifted to its highest level for more than a year, the Westpac McDermott Miller survey has found.
The quarterly survey's index rose 8.6 points to 111.1 - any reading over 100 indicates more optimists than pessimists.
"The improvement was pervasive," Westpac economist Felix Delbruck said. "Not only have households become more optimistic for the future, but their assessment of their current financial situation is the best it has been in five years."
A net 29 per cent of respondents said it was a good time to buy a major household item. While that is only a modest improvement on the September survey's 27 per cent, it is still the second highest reading for this indicator since the recession.
The lift in confidence adds to evidence, like electronic card transactions, that the weak September quarter was a pothole, rather than a ditch. It comes despite a stream of high-profile layoffs and an unexpectedly steep rise in the unemployment rate to 7.3 per cent.