Consumer confidence is finally on the rise, following a long string of Australian pessimism driven by pandemics, war, inflation, and interest rate rises.

The Westpac-Melbourne Institute sentiment index lifted 4 per cent to 84 points, the first lift since November.

Despite the increase, confidence is still at levels seen during the GFC.

“Consumers may be a little less fearful, but confidence remains very weak,” Westpac chief economist Bill Evans said.

“Index reads in the 80-85 range mean pessimists still greatly outnumber optimists.

“The improvement is a little surprising, especially given continued sharp rises in the cost of living and the RBA’s decision during the survey week to make another half a percentage point increase in the official cash rate.”

Evans notes that only record employment levels have kept the index from dropping further over the past year.

“Despite intense pessimism more generally, consumers are still remarkably upbeat about labour market prospects,” he said.

Official employment figures are released on Thursday, and are expected to hold steady at 3.4 per cent.