Consumers rattled by election dead heat

Confidence has taken a hit as Australia's political future remains in limbo amid turmoil on global financial markets.

Political instability in the wake of a deadlocked federal election has given Australians the jitters.

The ANZ-Roy Morgan consumer confidence index edged down 0.9 per cent last week, with levels slipping in the past fortnight after reaching a two and a half year high.

ANZ head of Australian economics Felicity Emmett says uncertainty following Saturday's cliffhanger election and concerns over the global outlook dragged sentiment down.

"Over the coming weeks, confidence could be affected if the government fails to secure a majority and a minority government proves difficult to form," she said.

"This uncertainty around the political outlook will likely remain a key influence on household confidence in the near term."

While consumers' views towards their future finances dipped 5.1 per cent, overall levels remain well above the long-run average.

And there was a bounce in views about the economic outlook following sharp losses the previous week.

Households' view of the 12 month economic outlook lifted 4.7 per cent, but levels are still below the long-term average despite picking up this year.

The measure on whether now is a good time to buy a major household item fell 2.5 per cent.