Shrugging off concerns about the global financial crisis and unemployment, Australians are riding a new wave of confidence, according the Sensis® Consumer Report released today.

However, the report, which interviewed 1,500 Australians nationwide from 18 August to 21 September, shows concerns about interest rates are beginning to re-emerge in some households.

Report author Ms Christena Singh said consumer confidence rose to the strongest level since November 2007.

"Overall, almost seven in 10 Australians are confident about their financial prospects for the year ahead, while less than two in 10 are worried," Ms Singh said.

For those who are worried about their financial prospects, the cost of living followed by unemployment and uncertainty about the economy are the main reasons for their uneasiness.

In line with stronger consumer confidence, consumption trends for the next 12 months increased for almost all categories, with the exception of health and medical expenses, where the trend fell marginally but remained positive.

Australians are also increasingly optimistic about the outlook for the Australian economy, with half believing it will be stronger in 12 months time and just 17 per cent expecting it to be in worse shape. In a first since November 2007, more Australians feel the economy will be better off in a year’s time than feel it will be worse off.

When looking at Australians' overall concerns, Ms Singh noted that social and not economic issues were highest on Australians' agendas.

Australia's health system rated as the biggest problem, with a concern level of 7.28 out of a possible 10, followed by the environment (7.12) and the drought (7.08).

Concerns about interest rates rose for the first time in four quarters, from 5.49 to 5.79.

Ms Singh noted that internet security was the issue which increased most during the quarter, up by 0.37 to 5.95.

About Sensis

Sensis is Telstra's advertising business and Australia's leading directories information resource, helping Australians find, buy and sell. Sensis delivers innovative and integrated local search and digital marketing solutions via print, online, voice and mobile channels to connect Australians 24 hours a day, seven days a week. Sensis' powerful, multi-channel portfolio provides an unparalleled local information source incorporating the White Pages® and Yellow Pages® directories; the MediaSmart digital advertising business; the Whereis® digital mapping business; the Citysearch® entertainment and lifestyle website; the sensis.com.au search engine; the 1234 operator-assisted, premium voice information service; and the accommodation website gostay.com.au. Sensis is also a partner in some of China's most popular websites including real estate and home furnishings website, SouFun.com; auto websites Autohome.com and Che168.com; and digital devices websites IT168.com and PCPop.com.cn.