Consumers are more uptight about government policy and are going to the movies less.
Concerns about government policy have overtaken cost of living woes to become the biggest consumer worry, for the first time since the National Australia Bank began gauging hip pocket anxieties two years ago.
State and federal government policies are both to blame, including power privatisation plans in NSW, NAB chief economist Alan Oster said.
"People look at the performance of government in general ... and they're uptight about it," he told AAP.
NAB's anxiety measure rose 1.7 points to 61.8 points during the March quarter, with seven out of 10 respondents worried about government policy, even though Canberra axed plans for a $5 Medicare co-payment in March.
The national survey of 2,100 people was taken in February and March as Mike Baird's NSW coalition government campaigned to sell the state's electricity poles and wires, prompting Labor and the unions to warn about higher power bills.
"Maybe people were feeling stressed about privatisation," Mr Oster said.
Across Australia, uneasy consumers cut back on non-essential items like entertainment, eating out, travel, home improvements and charitable donations to pay off debts, utility bills and medical expenses.
"They're not going to the movies as much," Mr Oster said.
"I don't see that going away."
Consumer spending levels are weaker than usual even though house prices and share market values are rising, and interest rates are at a record low, with economists tipping another cut soon.
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