Economic worries drags down confidence

Concerns about income and jobs growth is hurting consumer confidence, and borrowers are paying off debt at a much higher rate.

Consumer confidence is being dragged down by concerns about the economic outlook for the next few years.

The ANZ-Roy Morgan consumer confidence index fell 0.4 per cent last week, but the four-week moving average is at its highest since November, reflecting a more positive reaction to the federal budget.

Confidence in the economic outlook over the next year and next five years fell by about four per cent, reversing the gains of the previous week.

ANZ chief economist Warren Hogan said worries about income and employment growth are feeding into more cautious spending behaviour and an eagerness to pay off mortgages more quickly.