Consumers are becoming more pessimistic heading into Christmas, with weak September quarter economic growth figures not helping their mood.
Consumer confidence fell 0.2 per cent last week, to its lowest level in five months, according to the latest ANZ-Roy Morgan consumer confidence survey.
Official figures released in early December showed that the economy grew by 0.3 per cent in the September quarter, less than half the rate economists had expected and the weakest pace in three-and-a-half years.
ANZ chief economist Warren Hogan said the 'sticker shock' from these figures and negative headlines about the federal budget had weighed on people's moods.
"The key question now is whether this drop in confidence is sustained and slows consumer spending in the crucial Christmas shopping period," he said.
"This bears close watching in coming weeks and will be important for the momentum the economy will take into 2015."
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