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An easing in Donald Trump’s tariff war on the rest of the world, falling petrol prices and the re-election of Anthony Albanese have helped lift consumer sentiment.

The closely watched Westpac-Melbourne Institute measure of consumer confidence lifted by 2.2 per cent this month, after taking a battering in the wake of Trump’s “liberation day” tariff assault.

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Senior Westpac economist Matthew Hassan said sentiment had recovered a third of the loss it took last month, due in part to the rebound on financial markets as Trump reversed his tariffs and the “clear-cut” federal election result.

He said falling petrol prices, which have dipped an average of 13¢ a litre over the past month, had also contributed.

Consumer confidence is heavily influenced by political affiliation, with supporters of the party in government more likely to be upbeat about their finances and the economy than those whose party is in opposition.

Hassan said there had been a bounce in confidence among both Labor supporters and those who described themselves as swinging voters.

“Responses across the survey week and across voter subgroups suggest the federal election result was a small positive in the May month,” he said.

“Sentiment was notably higher amongst those surveyed in the first few days of (last) week.”

Despite the improvement, there remain more pessimists than optimists, although Westpac expects the Reserve Bank to cut official interest rates next week, which is expected to boost overall consumer confidence.