Consumer confidence is rising at Christmas, but economists doubt it will translate into more spending

Westpac's index says confidence rose 7 points to 97.5 in December - its highest level in three years.

It attributes the rise to falling mortgage rates, thanks to the Reserve Bank cutting the Official Cash Rate.

But Westpac Senior Economist Satish Ranchhod says spending should increase next year as more people roll onto lower mortgage rates.