The election boost to business confidence has extended to the nation's shoppers with consumer sentiment at its highest level in almost three years.
The Westpac-Melbourne Institute measure of consumer confidence lifted by 4.7 per cent this month
Westpac chief economist Bill Evans described the result as strong with the measure now back to where it was in December 2010.
He said while the cut in official interest rates by the Reserve Bank had helped lift sentiment, it was clear the election result was a major factor.
"I think it is reasonable to conclude that the election result played an important if not leading role in this strong boost to consumer sentiment," he said.
The survey was conducted all through last week and included September 8.
Mr Evans said there was a large pick-up in sentiment on the survey responses taken the day after the election.
The impact of the election on confidence was obvious by voting intention.
Sentiment among coalition supporters soared by 19 per cent in September. Among Labor voters it fell by 10 per cent.
While confidence dropped among people with incomes above $100,000 there was a 17.8 per cent jump in households with incomes between $60,000 and $80,000.
There were solid improvements in questions of whether it was a good time to buy a major household item, family finances in a year's time and in five year's time.
Mr Evans said it was now clear the Reserve Bank would hold rates steady at its meeting on October 1.
"There are a number of aspects to this survey that will give the board encouragement that the series of rate cuts, complemented by the confidence boost from the election make policy settings about right," he said."However conditions around the labour market; business investment; and actual consumer spending are still soft and the board will require more time to assess the underlying strength of the economy."