19 May 2011

Caution rules household spending

6:23 am on 19 May 2011

Consumer confidence has risen slightly, but households are still cautious about spending.

The monthly ANZ-Roy Morgan consumer confidence index rose 2 points to 103.3 in May. A reading above 100 shows optimism.

ANZ chief economist Cameron Bagrie says the improvement is marginal in the scheme of things, and more people are feeling worse off than they were a year ago.

Mr Bagrie says current sentiment remains relatively low, suggesting consumers remain cautious about spending.

But he says some positive signs are emerging.