Consumer confidence lifted to 99.3 points in July from 91.3 points month before A net 7 percent of households think it is a bad time to make a major purchase Fewer consumers feel worse off now, more are upbeat about future Consumers inflation expectations steady at 4.6 percent, expect house price rise to slow Consumer confidence has improved to its best level since February as a period of peace in the Middle East and lower fuel prices helped to lift sentiment.The ANZ-Roy Morgan Consumer Confidence Index rose eight points in July to 99.3, marginally below the 100 level which is the line between pessimism and optimism.ANZ chief economist Sharon Zollner said the US-Iran conflict and fuel prices were still influencing sentiment."Developments in the Middle East will continue to buffet both business and consumer confidence as long as the situation remains volatile."She said survey responses received later in the month, when hostilities broke out again, showed a dip in confidence.Fewer households reported being worse off financially now compared to a year ago at a net 16 percent, while a net 10 percent expected to be better off in a year's time, the strongest reading since the start of the year.Consumers were also less negative about the economic outlook for the next 12 months and more optimistic that the economy will be stronger over the next five years.There were also signs consumers may be becoming less wary about spending.The net proportion of households saying it was a bad time to buy a major household item improved to 7 percent from 11 percent."The question for retailers is whether people adapt to the uncertainty and to some extent lose interest, or whether it will cause a persistent hit to spending above and beyond the cashflow impact of more expensive fuel prices," Zollner said."It's a case of watch this space."Inflation expectations for the next couple of years held steady at 4.6 percent, compared to the headline rate of 4.1 percent for the June year, and expectations the rate will fall gradually towards the Reserve Bank's 2 percent target by the second half of next year.House prices were expected to increase by 2.6 percent in the coming year, slightly down on the June reading.