Consumers were more optimistic about the outlook of the economy in July, though they were vexed about spending and personal finances, says report.

According to a measure on consumer spending by the Melbourne Institute and Westpac Bank, consumer sentiment in July was down slightly by by 0.05 percent. The figure compares to an increase of a modest 4.7 per cent gain in June. The gauge is derived from a survey of 1200 people.

Compared to year-ago figures, the figure for July is 3 percent higher than the 102.1 in July 2012.

Westpac economist Matthew Hassan told Reuters,"The survey detail points to powerful 'cross-currents' underlying the stable headline result."

The figure is a reflection of Australia’s 22nd year of a recession free economy, with optimists outnumbering pessimists in their perception of the nation’s economy.

While expectations for the economy was high at 9.2 percent, survey data related to family finances were lower by 5.6 per cent in July. Asked if it was the right time to spend on major household goods, the measure slipped 1.7 percent.

Other factors that showed a broad range of mixed data were inconsistencies that propped up in line with age, gender and occupation. While consumer confidence was up 5.9 percent in women, men rated lower by the same measure.

"Pinpointing the exact drivers of these shifts is difficult," said Mr Hassan. However, he noted that the index accompanied by a decline in consumer confidence about personal finances is an indicator of economic fragility. This paves the way for another interest rate cut, said Mr. Hassan, reports Reuters.

"Our view is that there is a clear case for further support to demand highlighted by the lacklustre consumer response to lower interest rates and a further weakening in business conditions across both mining and non-mining sectors,” Mr. Hassan added.

In May, The Reserve Bank of Australia (RBA) slashed its cash rate to a record low 2.75 per cent. The RBA has signalled that it is ready to slash rates again in order to buttress demand.

The Westpace consumer confidence index comes a day after reports said Aussie bonds were weaker due to enhanced U.S jobs data.

The Australian dollar has stabilized after the U.S. Federal Reserve that it would taper off quantitative easing, designed to create stimulus packages to spur economic activity. Jobs in America increased by almost 100,000 in a combined total over June and July, signalling an economic recovery in the offing, News.com reported.