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Consumer confidence across the Tasman has hit a 19-month high, despite high petrol prices and three interest rate rises.
This month's Westpac Melbourne Institute Index of Consumer Sentiment has risen by 3.7 per cent to 115.5.
That is more than 3.5 per cent higher than for the same period a year ago.
Expectations for the next five years have risen 7.7 per cent.
Westpac's chief economist, Bill Evans, says such a big rise is unusual, especially when petrol pricing has been volatile.
"Petrol prices are now back to the highest level we've seen since mid-September last year," he said.
"That doesn't seem to be registering with consumers at this stage but I suspect that if that rise continues, then we'll start to see consumers becoming nervous about that second factor.
"Interest rates and petrol seem to be the two major factors that affect confidence."
Mr Evans says Australian consumers are responding to forecast stability in interest rates after three rate hikes last year.
"What it's indicating - and other data that we saw this week and in recent weeks is indicating - that the impact of the three rate hikes is starting to very much fade and the economy's moving into an up phase," Mr Evans said.
But another report for the March quarter has found a big drop in consumer confidence among people under 30, down 11 points to 48 per cent.
The Sensis consumer report has found younger Australians are struggling with the cost of living and are worried their wages will not keep up.
Confidence among 30- to 39-year-olds has dropped two percentage points.
But it has skyrocketed among Australians aged 50 and over, with those over 64 most confident about their financial prospects.
Their confidence has jumped 17 per cent in the quarter.
- RADIO AUSTRALIA
