Australia's consumer confidence increased in July after a tumble in the previous months but remained weaker than average, results of a survey by Westpac showed Wednesday.
The Westpac Melbourne Institute Index of Consumer Sentiment rose 1.9 percent on month to 94.9 in July from 93.2 in June.
This was only 2 percent more than the drop in May due to the Commonwealth Budget. July's index was also 14 percent below the November high and 10 percent less than the average score of 2013.
Among the sub-indices, the index measuring family finances relative to a year ago improved 1.9 percent. The index tracking one year outlook for finance strengthened 12.3 percent in July, though the 23 percent post-budget plunge in May has not been reversed yet.
The index of economic conditions tracking perceptions on the upcoming year increased 3.9 percent, while perceptions for the next five years dropped 3.8 percent in July.
The index measuring time to buy a major household item declined 2.1 percent in July.
Labor market confidence remained weak with the index falling 0.3 percent.
The time to buy a dwelling index, which showed promise in the previous month, declined 8.3 percent in July. Meanwhile, the house price expectations index increased 12.1 percent on month in July.
"A significant negative from the immediate post Budget response was the wide 19.1 point margin between the current conditions index and the expectations index, indicating that consumers were expecting a sharp deterioration in their finances and the economy," said Bill Evans, Westpac Chief Economist.
He added that the Reserve Bank of Australia is expected to hold its interest rates steady, although there is a 50 percent probability for a rate cut by early next year.
