What a difference a month makes: After being mired in the doldrums in January, Australia’s consumers are suddenly much cheerier. And that’s despite the difficult job market, as well as turmoil in the country’s Parliament that led up to the failed ouster earlier this week of Prime Minister Tony Abbott by members of his own party.

The latest Westpac-Melbourne Institute Index of Consumer Sentiment jumped 8% month over month. That’s the largest increase since September 2011, and it means the index has now recovered roughly half the ground lost since its last peak amid the euphoria prior to the conclusion of the country’s federal elections in September 2013.

Westpac Chief Economist Bill Evans attributes the result to the Reserve Bank of Australia’s (RBA) decision to cut rates again, as well as lower fuel prices at the pump, and a higher stock market. He notes that the survey’s results also show optimists slightly outweighing pessimists for the first time since last February.

Though it seems unlikely that the average Australian is a close observer of monetary policy, the effect of a quarter-point cut in the central bank’s benchmark cash rate ends up being at least partially mirrored in mortgage rates and other sources of consumer financing.

Economists had also been worried that the RBA’s action would be perceived as a drastic move in response to a sudden deterioration in fundamentals. But data from the survey suggest that consumers weren’t unnerved by it.

Indeed, absent all the surprise rate cuts from its central bank peers in recent weeks, the RBA might have held rates steady a while longer, especially given its concern over the country’s housing market.

Based on survey data, the central bank’s fear that another rate cut would further inflate the country’s housing bubble appears entirely justified.

Westpac says the rate cut strongly boosted confidence in the housing market, with views on whether it’s time to buy a dwelling jumping by 9.7%, the highest level in a year. Similarly, the index of house price expectations was up by 6.9%, the highest level since last September.

And while crude’s collapse has been dispiriting to resource investors, such as ourselves, it’s considered tantamount to a tax cut for consumers. In fact, some economists have said that lower gas prices have given consumers the equivalent of two rate cuts’ worth of spending power.

Finally, it’s important to remember that the stock market and the economy do not march in lockstep. Indeed, even though Australia’s economy is growing at a rate below its long-term trend, the Australian Securities Exchange (ASX) just hit a new post-Global Financial Crisis closing high.

In fact, Westpac says the market’s 9.7% rise between the two surveys was the largest one-month increase since August 2009.

Since all three of the aforementioned factors are helpful to household finances, consumers’ assessment of their financial condition has brightened considerably.

The number of Australians who believe their finances are in better shape than a year ago surged 12%, and those who expect their finances to improve in the coming year were up by 7.6%.

Still, it’s important to note that the latest employment data from the Australian Bureau of Statistics show a worsening job market. The country’s unemployment rate rose to 6.4% in January, up two-tenths of a point from the prior month and the highest level since 2002.

That’s also just a tick below where the RBA had previously forecast the unemployment rate to peak for this cycle. The central bank’s projections suggest consumers will face a difficult job market through 2016.

And that could mean that anxious consumers keep a tight rein on spending, even if they otherwise have a rosy outlook. This possibility was evidenced by the fact that the number of consumers who believe now is a good time to buy a major household item only increased by 0.5%.

But even if the employment market remains uncertain, consumers are likely to get a further boost in the form of yet another rate cut. A majority of traders are now betting the RBA will make another quarter-point cut at its next meeting in early March.