Consumer sentiment is continuing to weaken amidst tough market conditions.
Consumer confidence fell 2.3 per cent last week, according to the latest Roy Morgan data.
The dint is symptomatic of weakening economic conditions, the market research company says.
Household purchasing plans also fell by 1.4 per cent, its third consecutive decline this year.
The outlook for monthly inflation expectations also showed signs of slowing down as a result of the consumer spending slowdown.
ANZ Head of Australian Economics, David Plank said Australian households were reigning in spending because of global economic tensions and weaknesses in the stock market.
“Views about current economic conditions have fallen materially for three weeks in a row, while those for future economic conditions are at their weakest since October/November last year.
“The relative buoyancy of sentiment about personal financial conditions indicates that the tax cuts and lower interest rates are having a positive impact on households. But this hasn’t been sufficient to offset the global news flow,” he said.
“The past three weeks have seen weekly readings of less than 4%.”