Consumer confidence is slowly improving, which should result in a pick up in spending going into the Christmas period.

The ANZ/Roy Morgan consumer confidence index rose 1.2 per cent last week, partly reversing a 1.6 per cent fall the previous week.

ANZ chief economist, Warren Hogan, said the improvement was driven by more positive expectations about household finances.

“Job vacancies data last week showed labour demand in the non-mining sector continues to gradually improve, particularly in labour intensive industries such as construction, health and retail,” he said.

“Alongside low interest rates and rising house prices, this should support consumer confidence and retail spending as we head into the Christmas season.”

AAP