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Consumer confidence has picked up in recent months as pessimism about the economic outlook begins to ease.
The Westpac McDermott Miller Consumer Confidence survey for the September quarter rose 9 points to 90.8 points.
However, any reading under 100 indicated pessimistic households outweighed those who were optimistic.
Westpac senior economist Satish Ranchhod said the cost-of-living crisis continued to be a drag on retail spending, with an increases in the cost of household utilities, rates, insurance and a range of other financial pressures.
While the recent tax cuts may have provided some relief, he said worries about job security continued.
"But while many families have been doing it tough, they're now starting to feel a bit more optimistic about the outlook for their own finances and the economy more generally over the coming year," Ranchhod said.
"Some of the headwinds that have been buffeting households over the past few years are now finally easing, with falls in inflation and borrowing costs.
"And while it will take time for the full impact of those changes to flow through to households' back pockets, many families are set to see an improvement in their finances over the coming year."
McDermott Miller market research director Imogen Rendall said there had been an uplift in confidence across the different demographic groups, but all remained pessimistic.
"Men's confidence rose this quarter by 7.4 points to an index score of 96.5," she said.
"Confidence amongst women also rose by 9.8 points but are more pessimistic overall at 85.2."
She said job insecurity was reflected in the numbers.
"For those in paid work, confidence has risen by 10.8 points this quarter to 94.4, while those not in paid work saw a smaller rise of 4.1 points to 83.4.
"Just under two in five of those in paid work expect to be worse off financially in a year's time, compared with over a quarter of those who are not in paid work feeling this way."
The survey was conducted over 1-11 September 2024, with a sample size of 1,555, with 2.5 percent margin of error.
